The EU oil embargo could have serious consequences for German petrol stations. In an interview with the magazine “Wirtschaftswoche”, the head of the association of independent petrol stations (Bundesverband Freier Tankstellen) Duraid El Obeid expressed his deep concern about the current situation. Even though contracts have been concluded with suppliers for a year, and he assumes that promised fuels such as diesel and gasoline will be delivered, the oil embargo could still have negative consequences for Germany. “The refineries in the cities of Schwedt and Leuna would certainly be able to supply less mineral oil, at least for a while,” – Obeid told reporters at Wirtschaftswoche.
The management of Berlin-based gas station chain Sprint has already taken steps to ensure the continuity of fuel sales
Obeid, who is the head of Berlin’s Sprint gas station chain, already took precautionary measures four weeks ago. Transport capacities for the following months were secured in advance, for example on tankers or inland waterway vessels. “We took such measures four weeks ago. This would allow us, for example, to transport mineral oil from Hamburg to Berlin,” Obeid said. This is to ensure the continuity of fuel sales at gas stations in and around Berlin.
Obeid is sure that even if Putin stopped oil supplies completely, such quantities of fuel could be bought elsewhere. However, transportation by ship and train could be a problem. “For example, the fuel warehouse in Seefeld near Berlin is connected by pipeline to the PCK refinery in Schwedt. The warehouse is not at all prepared for the assault of trains, ships and tankers,” Obeid surmised.
A “storm” of German gas stations is expected on June 1
June 1 in particular could be problematic, because it is on that day that the federal government plans to introduce for the first time the so-called fuel rebate, thanks to which the price per liter of gasoline will be lower by 36 cents, and a liter of diesel will cost 17 cents less. Therefore, you have to reckon with the fact that on June 1, gas stations in Germany will be “stormed”. This could be particularly problematic for small businesses, as they do not procure mineral oil on the basis of annual contracts, but on the spot markets. The spot market was closed two months ago, so gas station owners have to buy mineral oil either from traders or oil companies. “But having no purchasing power, they are reliant on what they can get in the market. Purchase prices are high, banks demand more collateral for pre-financing loans. This can put a heavy burden on small gas station operators,” – said the president of the Federal Association of Independent Gasoline Stations.
He also predicts further price increases in the near future. “Soon gasoline prices will again exceed two euros per liter, perhaps even 2.20 euros per liter,” Obeid believes. Logistics costs alone make mineral oils more expensive. “If in the future fuels are delivered by tankers from more distant locations, this will be reflected in prices,” – he explains.
Source: www.businessinsider.de