Germany Fuel Prices: Southern Regions See Lower Increases & Wider Disparities

Heating oil prices in southwestern Germany are significantly lower than in other regions of the country, a divergence attributed to oversupply at two major refineries. As of March 19th, heating oil in the southwest traded at nearly €20 per 100 liters below prices in the Cologne Lowland, Germany’s most expensive region, whereas diesel was discounted by approximately €12.70 per 100 liters compared to Berlin.

The price reductions stem from increased output at the 310,000 barrel-per-day Miro refinery in Karlsruhe and the 207,000 barrel-per-day Bayernoil refinery in Vohburg-Neustadt, exceeding current demand. Suppliers are offering discounts to stimulate sales, and some are even exporting middle distillates to the Amsterdam-Rotterdam-Antwerp (ARA) hub to alleviate the surplus.

This regional price spread is the widest it has been since September 2022, when supply constraints, particularly in southern and western Germany, led to substantial price differences. However, demand across the country remains weak. Heating oil volumes reported on March 19th were at their lowest level since November 1st, 2024, excluding the All Saints’ Day holiday which disrupted trading.

The recent escalation in the US-Iran conflict triggered a sharp price increase nationwide from March 18th to 19th, with the average heating oil price rising by €12.80 per 100 liters, reaching its highest point since the end of August 2022. Despite this increase, end-users continue to postpone non-essential purchases, according to traders.

The situation at the refineries follows a period of German government intervention in the ownership of these assets. In 2022, Germany placed Rosneft’s German refining assets – including the Miro and Bayernoil facilities – under the control of the Federal Network Agency (Bundesnetzagentur) as a precautionary measure against potential disruptions to energy supply. Germany is still seeking a buyer for Rosneft’s stake in these refineries, and the trusteeship has been extended for a third time, according to Reuters.

Rosneft continues to own the oil refining assets in Germany, but their operations are overseen by the German government. The company has not commented on the current oversupply situation or the impact of the trusteeship on production levels.