The head of the “Fuels and Energy Industry Association” Christian Küchen, anticipates that the impact of the Iran conflict on gasoline prices in Germany will persist for an extended period. Speaking to RTL and ntv on Friday, he noted that while prices saw an average decline compared to global market indicators, the current situation remains extremely volatile. He stressed that the uncertainty involves how soon the supply chain will stabilize and how quickly damaged refineries can be rebuilt.
According to Küchen, the issue extends beyond the Strait of Hormuz; it concerns the global supply available. He stated that predicting the timeline is currently impossible and that they expect the effects to be felt for longer.
Addressing the accusation of price gouging due to the elevated fuel costs resulting from the Iran conflict, the lobby group refuted the claim. Küchen explained that this is a consequence of global market dynamics, citing the international energy agency’s assessment that the world is experiencing the most significant disruption to oil supply in history.
He specified that congestion in the Strait of Hormuz and damaged refineries have taken approximately 20 percent of the total oil supply out of circulation. Küchen cautioned that the consequences could be long-term because the issue does not solely relate to crude oil, but specifically impacts refined products like gasoline and diesel, which operate on separate markets. He added that the global market developments are particularly visible in the derived demand for these fuels.
This overall global supply disruption is what has driven up prices worldwide. Küchen concluded by asserting that prices at German gas stations accurately and relatively closely reflect the current market trends for these specific products, noting that similar developments are observable globally.