Monitoring Desk
ISTANBUL: Germany’s capital Berlin and eastern regions are facing gasoline shortages and high fuel prices, as Russian oil has no longer flowed to Europe since January 1.
The PCK oil refinery in Schwedt, in the eastern state of Brandenburg of Germany, which was previously receiving supplies exclusively from Russian pipeline oil, is only running at about 50 percent capacity due to the drop in supply after Russia banned supplies, according to the Business Insider website.
The reduced production is about to show effects. This is already indicated in the markups on the national average gasoline price of the Seefeld gasoline depot, located northeast of Berlin.
This had already surged in the first two days of January compared to the previous week from $1.89 (€1.76) per 100 liters to $4.74 (€4.40) per 100 liters. Meanwhile, price information service Argus Media reported that there is already a production shortage of gasoline in Berlin and other areas.
Fuel prices up as Russia cuts supply
According to Argus Media, PCK shareholders have been withholding gasoline since January 2, 2023. According to Business Insider, several employees are working reduced hours at the oil company that operates PCK.
Larger alternative oil supplies from Kazakhstan and Poland, as announced by the German government, have yet to arrive, Business Insider adds. Relations between Russia and Germany are strained over the war in Ukraine, and Berlin accuses Moscow of war crimes in Ukraine, suspends bilateral cooperation, and imposes tough economic sanctions.
Before the war began in February 2022, Russia supplied nearly 55 percent of Germany’s natural gas and 35 percent of its oil. German Chancellor Olaf Scholz’s governing coalition had decided to completely stop oil imports from Russia by the end of 2022 and reduce gas imports to a minimum while reaching agreements with Qatar and the United Arab Emirates to import liquefied natural gas.
