Fuel Price Hits All Time High In Germany, Sells For N802.65 Per Liter

The cost of petrol and diesel in Germany has reached an all-time high, the ADAC motoring association said on Wednesday.

The previous day, E10 petrol cost €1.712 ($1.93) based on a nationwide daily average, breaking the previous record of €1.709 on Sept. 13, 2012, ADAC reported.

When converted based on the official exchange rate of the Central Bank of Nigeria, Germany’s petrol cost of €1.712 ($1.93) translates to about N802.65 per liter.

Diesel cost €1.640 per litre which is about N768.89 when converted with the official Central Bank of Nigeria’s rate.

However, prices had been driven up by the oil market; the value of North Sea Brent recently exceeded $90 per barrel, its highest level in years.

The trend is driven by both economic and geopolitical factors.

Supply is scarce and demand high. Meanwhile, political tensions at the Russian-Ukrainian border were pushing up the risk premium for crude oil.

Russia is one of the world’s largest oil producers.

A new carbon pricing system that went into effect at the start of the year in Germany has also made fuel more expensive

However, ADAC said the difference is relatively small at about 1.5 cents per litre.

The surge in fuel prices follows record lows registered in 2020, when the COVID-19 pandemic first hit the world economy.

the International Energy Agency had said that crude oil prices would continue to soar as rising Covid vaccination rates, loosening pandemic-related restrictions, and a growing economy resulted in global petroleum demand rising faster than petroleum supply.

Global crude oil prices have risen substantially in the past 30 days, inching toward the $100 a barrel mark and igniting concerns of higher inflation in both international and domestic markets.

Crude oil price rose to its highest level on Wednesday, following rising geo-political tension and higher demand for the black liquid