Rhine low water pushes up fuel prices in western Germany, supply shortages possible

Rhine low water drives up fuel prices

Falling water levels on the Rhine are pushing up fuel prices in Germany, with the effect concentrated in the country's western regions. ADAC fuel market expert Christian Laberer said the current low water on the Rhine is having a price-driving effect, as the river serves as a key transport route for oil, gasoline, and diesel. According to Laberer, logistics costs for transporting fuels and intermediate products have risen "partially significantly." He stressed, however, that this is only one of several factors, as the German market is supplied through a network of seaports, refineries, pipelines, and rail and road connections, not exclusively via the Rhine.

Historic low in Cologne

In Cologne, a historic low water level was measured at the Rhine gauge on Tuesday, according to data from the Wasserstraßen- und Schifffahrtsamt Rhein. Water levels are forecast to drop further in Cologne, Düsseldorf, Emmerich, and Duisburg-Ruhrort by Friday evening. Moritz Axt, spokesperson for the authority, said a slight rise is expected in the coming week but cautioned that this does not yet represent relief, as Rhine water levels in North Rhine-Westphalia will remain at very low levels.

You can hardly believe what you are seeing.

Supply shortages loom

The Wirtschaftsverband Fuels und Energie (en2x) warned that as water levels continue to fall, the probability of temporary and regionally limited supply shortages increases, particularly if compounded by rail delays, technical disruptions, or other transport logistics constraints. The association noted that inland ships must be loaded with reduced cargo volumes, in some cases to a quarter of normal capacity, or have had to cease operations entirely. Transport is being shifted to trains and trucks where possible, though those capacities are also limited. en2x managing director Christian Küchen emphasized that member companies are working continuously to maintain deliveries to petrol stations, heating oil customers, airports, and industry.

Thanks to ongoing adjustments to logistics, petrol station operations have so far been running at a normal level, including throughout the entire Rhine area.

Regional price divide

The price portal Tankerkönig shows a clear west-east divide. As of Tuesday morning, North Rhine-Westphalia and Hessen had the most expensive gasoline, followed by Bremen, Rhineland-Palatinate, and the Saarland. For diesel, NRW and Hessen ranked second. The price difference between Bavaria, especially its southern half, and NRW or Hessen amounts to roughly 7 cents per liter for gasoline and about 8 cents for diesel.

Diesel refinery prices also rising

Refinery diesel prices rose on Monday, adding another layer of pressure. European refinery margins for diesel increased by nearly 10 percent. The futures contract for ultra-low-sulfur US diesel climbed 7.4 percent to $4.19 per gallon, the largest increase since July 13. This followed a Ukrainian attack on a refinery in the Russian region of Tatarstan and a Houthi militia attack on the Jazan refinery in Saudi Arabia, which has been closed since July 27 following an earlier bombardment.

Public skepticism

Some readers responding to the news on Focus questioned the link between low water and fuel prices. Several commenters pointed to taxes, which they said account for roughly 60 percent of the pump price, and to oil company profits as the real drivers of higher costs. Others argued that the existing infrastructure of pipelines, ports, and refineries should be sufficient to prevent supply issues.