Germany extends lockdown, tightens Easter measures

Germany has extended its nationwide Covid-19 restrictions to 18 April and will tighten measures for the Easter holiday weekend, the government said today.

This is a blow to any prospect of demand increases in Europe's largest market for road fuels. Fuel demand increased in March on the month but remains sluggish compared to last year's levels.

Chancellor Angela Merkel and the heads of the German states have agreed to extend into next month contact restrictions and home-working requirements. The government said that 1 April and 3 April will be "quiet days" in which "far-reaching reduction of all contacts" are required. This essentially extends the Easter weekend.

The new measures could further lower already sluggish fuel demand. Filling station operators have decreased term buying by around 20pc on the year this month, after year on year reductions of around 45pc in February. Still, average gasoline spot-volumes for pickup from terminals have increased by 65pc on the month so far in March, and diesel volumes by 45pc, according to deals submitted to Argus.

By Alina Rapoport