Iran war drives gasoline prices in Germany to record high

The price of gasoline has reached a record high following the resurgence of the Iran war, Europe's largest automobile association (ADAC) said Thursday.

The nationwide daily average price for a liter of E10 gasoline surged to €2.215 ($2.57) on Wednesday, surpassing the previous record of €2.203 set in March 2022, ADAC added.

Furthermore, low water levels on the Rhine river have also recently had an impact on prices, as they have increased transportation costs.

E10 is the cheapest common type of gasoline in Germany. It is generally 5 to 6 cents cheaper than Super E5, which is allowed to contain less biofuel.

High gas prices are often followed by calls to ease the burden on drivers. From early May through late June, a fuel rebate of 16.7 cents per liter was in effect, which cost the federal government approximately €1.6 billion, according to an estimate by the Finance Ministry.

The government has so far refused to renew the program. Germany's public finances are already in the red due to the debt-financed investment package.

Nominal price records do not reflect, in any case, what percentage of their income citizens actually have to spend on energy, food, etc. This is because both prices and wages are rising. The statistical offices therefore always report the inflation rate on an adjusted basis.

In August, inflation had risen again to 2.9% overall due to the war in Iran.