Cheap E10 Fuel for Less Than $1.70 per Liter: ADAC Announces Cost Reduction
Drivers are shrugging off their worries! The E10 fuel now costs a mere 1.69 euros per liter at German petrol stations, a price last seen during the festive season two years back. According to ADAC, diesel is currently averaging 1.56 euros per liter – a figure last witnessed in June 2023.
ADAC attributes this price decrease to a prolonged period of stable oil prices and decreased global demand, especially in key markets like China. Furthermore, the current decline in the dollar's value against the euro has played a role.
However, it's uncertain whether these prices will continue to drop or spike soon. The fate of fuel prices depends on upcoming trends in the global economy, geopolitical conflicts, and the plans of significant oil-exporting countries.
For fuel savings, ADAC suggests refueling between 7 PM and 8 PM or 9 PM and 10 PM. Intriguingly, the price of fuel rises by approximately six cents per liter at 7 AM.
The current drop in fuel prices, as confirmed by ADAC, is largely attributed to decreased global demand, primarily in significant markets such as China. Given the ongoing uncertainties in the global economy and geopolitical situations, it remains fuzzy whether this decline in fuel prices will prolong or experience a reversal soon.
Further Reading:
Additional Factors Impacting Fuel Prices
- The US Energy Information Administration (EIA) projects a decrease in crude oil prices in 2025 and 2026, with Brent crude averaging $74/bbl in 2025 and falling to $66/bbl in 2026. This trend is due to increasing global oil inventories in the second half of 2025 and 2026, which will place downward pressure on prices[1].
- OPEC+ has announced intentions to gradually increase oil production by 2.2 million barrels per day starting from April 2025, potentially leading to a decrease in oil prices as global supply increases[2]. However, this increase is contingent upon market conditions, and OPEC+ might halt or reverse the production boost if market conditions change[2].
- Geopolitical tensions, like those in the Middle East and lingering conflicts in Eastern Europe, can produce considerable price volatility in the oil market[3]. Sanctions on oil-producing countries such as Iran and Russia can disrupt supply chains, causing prices to rise[3][4]. The possibility of lifting Russian sanctions could augment global oil availability; however, ongoing US restrictions on Iranian exports may counteract some of that impact[4].
- Weak consumer sentiment data from the US and concerns about a new coronavirus strain have cast doubt on demand growth, introducing a bearish influence to the market outlook[4]. China’s economic direction will be instrumental in determining whether demand-side factors can support higher prices. China's shift towards greener energy sources, such as electric vehicles, diminishes oil demand[3].
- The imposition of tariffs on imports from Canada, Mexico, and China by the US could diminish global oil demand and signal bearish trends in the oil market[1][2]. Continuing trade tensions between the US and China create uncertainty in global markets, including the oil sector[3].
- Global crude production is predicted to average 77.44 million barrels per day in 2025 and 78.39 million barrels per day in 2026, stimulated by supply growth from non-OPEC+ countries and the loosening of OPEC+ production cuts[1][4].
