First month below previous year’s value
Prices for heating and refueling are falling significantly
4/1/2023 4:54 p.m
The Russian invasion of Ukraine is driving up costs for heating and fuel in particular to record highs. A year later, the situation looks more relaxed. This is due to the high comparative level, but also to state aid.
After sometimes drastic price hikes for energy, households are beginning to notice slight relief. March was the first month since the beginning of the Ukraine war with fuel prices below the values from the same period last year. The ADAC assumes nationwide average values of a good 1.76 euros for E10 premium petrol and just under 1.72 euros for diesel. For diesel, that would be a good 42 cents less than a year ago, for E10 more than 30 cents.
The strong year-on-year decline is mainly due to the fact that March 2022 was the most expensive month ever for fuel. Gasoline has become slightly more expensive since the beginning of the year, while diesel has become cheaper. This also continued in March. “The expected normalization is progressing, and I believe that it will continue,” said ADAC fuel market expert Jürgen Albrecht.
Consumers don’t just feel the relief at the pump. According to an analysis by the comparison portal Verivox, energy costs for private households fell in the first quarter of 2023 for the first time in two years. According to this, the annualized expenditure for heating, electricity and fuel fell by an average of 18 percent from January to March, as Verivox announced. Previously, costs had risen for eight consecutive quarters. “In addition to falling prices on the raw materials markets, the state brakes on energy prices also provided significant relief,” it said.
Fear of bottlenecks decreases continuously
The Energy costs of a model household According to Verivox, in the fourth quarter of 2022 they were still projected at 7163 euros per year. In the first three months of 2023, the same amount of energy cost 5889 euros per year. The model household assumed by Verivox has an annual heating requirement of 20,000 kilowatt hours, an electricity consumption of 4000 kilowatt hours and an annual mileage of 13,300 kilometers. “With the receding fear of supply bottlenecks, wholesale prices for energy have fallen continuously in recent months,” explained Verivox energy expert Thorsten Storck. As a result, many energy suppliers lowered their prices. Households would also have benefited from the state price brakes.
The old price advantage of diesel fuel over petrol has not yet been fully restored. On a long-term average, diesel was around 15 cents cheaper than E10 before the outbreak of the Ukraine war. On Thursday, the diesel price was 1.688 euros per liter, 9.1 cents below the 1.779 euros due for the E10. At the beginning of the Easter holidays, prices were at a rather high level compared to the price of oil, said Albrecht. He advises: “If you’re going on a trip, it’s best to fill up the tank the evening before, it’s cheaper.”