The developments in the Middle East continue to cause uncertainty in the energy markets. Towards the end of last week, petrol and diesel prices in Switzerland rose by three centimes per litre, and this week the price is increasing by another three centimes per litre for petrol and five centimes per litre for diesel. Unleaded 95 currently costs an average of 1.87 francs per litre and diesel 2.05 francs per litre according to TCS expert Erich Schwizer. He points out that prices for fuel and other petroleum products remain high for other reasons as well.
Lack of Refining Capacities
Several refineries in both the Persian Gulf and Russia have been damaged by attacks, resulting in a current lack of refining capacities. Even if the shipping route through the Strait of Hormuz were unrestrictedly passable again, additional deliveries would only reach Europe with time delays.
In addition, China had temporarily severely restricted exports of refined fuels to secure its own supply and to reduce crude oil imports. The restrictions are now being gradually relaxed. However, since petrol and diesel (like crude oil) are also traded worldwide on the stock exchanges, those refineries that can produce at full capacity achieve correspondingly higher prices for these products.
Low Rhine Water Levels
The costs for Rhine shipping have also increased. Due to the long heat wave, low water levels prevail, resulting in fuel-transporting Rhine ships no longer being able to be fully loaded. The low water level leads to significantly higher transport costs on the Rhine.
The rate has approximately quadrupled from 33.50 francs to 143.00 francs per tonne in just over a month. According to TCS's assessment, this rate increase affects the petrol price at the pump by around 8.5 centimes per litre. Should the current market conditions persist, this could further increase the price pressure on fuels.
Despite the tense market situation, significant price differences between petrol stations still exist in various regions of Switzerland. Discount petrol stations sometimes offer petrol and diesel more than ten centimes per litre cheaper than the national average. The TCS Fuel Price Radar and the TCS App help, thanks to the active community, to find these cheaper petrol stations.
Key Influencing Factors for Fuel Prices
Prices at Swiss petrol stations are influenced by a variety of national and international factors:
- Crude oil price on international markets
- Exchange rate US Dollar/Swiss Franc, as crude oil is traded worldwide in US dollars
- Refinery capacities and margins
- Supply and demand for petrol and diesel on international markets
- Geopolitical events
- Transport and logistics costs, such as restrictions on Rhine shipping
- Government levies and taxes, especially mineral oil tax, mineral oil tax surcharge, CO2 taxes (where relevant), and VAT
- Competition and margins in wholesale and retail, which is why prices can vary significantly between petrol stations.
Press Contact:
Vanessa Flack, media spokesperson TCS
Tel. 058 827 34 41 | vanessa.flack@tcs.ch