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Brandenburg debates fuel price surge as Kazakh oil halt threatens refinery

A critical oil shortage pushes fuel prices higher, risking economic fallout. Can Brandenburg's tax cuts and new supply routes save the Schwedt refinery?

The image shows a graph on a white background with text that reads "fuel prices in the United...
The image shows a graph on a white background with text that reads "fuel prices in the United States". The graph is composed of two lines, one in blue and one in green, that represent the prices of fuel in each state. The blue line is steadily increasing, indicating a decrease in fuel prices over time. The green line is slightly higher than the blue line, indicating an increase in prices. The text is written in a bold font and is centered on the graph.

High Fuel Prices to Be Debated in State Parliament on Thursday

Brandenburg debates fuel price surge as Kazakh oil halt threatens refinery

Potsdam (dpa/bb) – Brandenburg's state parliament will address soaring fuel prices and their economic impact today (starting at 10:00 AM). During the topical debate, lawmakers are also set to discuss the root causes of high fuel and energy costs, as well as potential countermeasures.

The war in the Middle East has triggered sharp price spikes in oil and gas. In response to the surging fuel costs, the state's center-left coalition government has announced temporary tax relief for drivers: taxes on diesel and gasoline are to be cut by roughly 17 cents per liter (gross).

The debate is also expected to focus on the looming halt in transit of Kazakh oil through the Druzhba pipeline, which supplies the PCK refinery in Schwedt. If Kazakh oil remains unavailable for an extended period and cannot be replaced, the refinery's capacity utilization could drop significantly. Danny Ruthenburg, chair of PCK's works council, told the German Press Agency: "That would be really bad for PCK—we'd drop to 65 percent capacity. Then we'd have a major problem on our hands."

Federal Economics Minister Katherina Reiche (CDU) stated that she expects production in Schwedt to continue. The ministry is in close dialogue with the refinery's management, she said, exploring alternative supply routes via the ports of Gdańsk and Rostock.

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