Europe Retail Road Fuel Prices Post Multi-Year Highs on Iran Conflict: OPIS NAVX

Retail road fuel prices in France, Germany, Italy, Spain and the U.K. have posted multi-year highs, buoyed by rocketing crude due to the Iran conflict.

Spanish diesel pump prices showed the largest movement in all the five markets in the week to March 9, with a 20.9% surge. It was biggest gain since OPIS NAVX records began and dwarfed the previous highest week-on-week rise of 7.8% in March 2023. German diesel prices soared on week by 19.2%, which was also an all-time record gain for German diesel – the previous highest increase was 12.5% in March 2022. Retail diesel values in all five markets climbed by an average 15.3% over the week.

Retail gasoline prices registered much smaller weekly gains than diesel pump values in the seven days to 9 March, with Spanish gasoline values recording the biggest hike in all five markets of 10.4% — the highest since at least 2020. The next largest jump was for German gasoline at 9.7%, which was the highest rise since the 12% gain in September 2022.

The average growth in retail gasoline and diesel prices on the week, however, were dwarfed by those seen for crude oil and physically traded spot gasoline and diesel prices. OPIS data shows that in the period March 2- 9, Brent surged by an average 22% at the 4:30 p.m. U.K. time marker, according to Intercontinental Exchange data. Spot gasoline values were up by an average
20.4% — almost treble the rise in retail gasoline. Spot diesel rocketed by an average 26.7% — about double the gain for retail diesel values.

Despite claims by some motorists organizations that retailers are profiting from the surge in crude and refined product prices, the above figures suggest otherwise. Both OPIS NAVX and OPIS statistics show even the largest increases in retail gasoline and diesel prices this week were less than those for spot gasoline and diesel.

U.K. gasoline prices on March 9 were the lowest in all five markets at an average £1.38 ($1.84)/liter, knocking Spanish gasoline prices off a position they have occupied for the past two years. The highest gasoline price in all five markets was paid by German motorists at an average €2.09 ($2.41)/liter.

Despite having the biggest gain over the week to March 9, the lowest-priced diesel in all five markets was still found at Spanish pumps with an average price of €1.75/liter. German motorists paid the most for diesel at an average €2.19/liter.

In response to the record hike in retail gasoline and diesel values, some European governments and retailers are taking action to try to limit the impact on drivers’ wallets. The German government, according to a March 13 post on the German motorist organization Allgemeiner Deutscher Automobil-Club’s (ADAC) website, is planning to introduce legislation that will limit retail service stations to increase prices to just one per day.

The Austrian government has introduced a similar measure, the post noted. ADAC, however, argues that this measure will not prevent retailers from charging what are seen as unrealistically high prices.

French energy major TotalEnergies announced in a news release Thursday that on March 13 it will cap gasoline prices at its pumps in France at €1.99/liter and diesel at €2.09/liter. The cap will last until the end of March, when it will be reviewed. OPIS NAVX showed French gasoline was at €1.83/liter and diesel at €1.98/liter on March 9.

“If oil were to settle at around the $90 a barrel mark and the pound were to maintain its current position against the U.S. dollar, drivers in the U.K. could expect average petrol prices to reach around [£1.40] a liter, and diesel around [£1.67] a liter,” said RAC head of policy Simon Williams in a March 11 statement.

U.K. gasoline and diesel prices climbed to £137.7/liter and £1.52/liter, respectively, on March 9, OPIS NAVX data showed.

Reporting by Yazdi Merchant, ymerchant@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com