New energy shock hits Germany

Petroleum product prices have surged over 50% as Middle East conflicts deepen Germany’s energy crisis following its break with Russian supplies Petroleum product prices have soared in Germany, with gasoline and diesel nearly 49% more expensive and heating oil nearly doubling over the past year, according to official figures.

The surge comes as Europe’s largest economy continues to grapple with the fallout from its break with Russian energy in 2022, now compounded by the US-Israeli war against Iran.

Prices for refined oil products jumped 51.3% year-on-year in September and 8.2% from August, the Federal Statistical Office (Destatis) reported on Tuesday.

Heating oil surged 91.8%, motor fuels rose 48.6%, and naphtha, used in chemical manufacturing, climbed 53.8%.

The figures reflect producer prices rather than those paid by consumers at the pump.

The shock spread across the energy sector.

Producer energy prices rose 14.9% year-on-year, with natural gas distribution costs up 15% and electricity 8.2%.

Read more Germany to hit consumers with new energy levy – media Germany’s crude oil import bill also surged despite slightly lower purchases.

In the first eight months of 2026, the cost jumped 21.7% to €30 billion ($33.6 billion), while volumes fell 0.6% to 49.1 million tons.

Destatis attributed the increase to higher crude oil prices amid the Middle East conflict.

The pressure has spread across German industry.

Overall producer prices rose 6.7% year-on-year in September, the sharpest increase since March 2023.

Manufacturing materials and components became 6.4% more expensive, while machinery and equipment rose 2.4%.

Excluding energy, producer prices were up 3.2%.