German fuel prices drop for first time since start of Iran war

German fuel prices have dropped for the first time on a daily basis since the United States and Israel began attacking Iran last month, the German ADAC motoring organization said on Thursday.

The price for one litre of E10 premium petrol stood at €2.011 on Wednesday, down by €0.034 compared to Tuesday, while diesel was €0.054 cheaper on average, selling for €2.134 per litre on Wednesday.

However, prices remained well above the level seen before the start of the war on February 28, with a litre of E10 premium some €0.23 more expensive, while diesel prices are still some €0.39 higher.

Fuel prices have been driven by crude oil prices, which were sent skyrocketing due to the war.

The transport of energy supplies from producers through the strategically important Strait of Hormuz has largely come to a standstill amid security concerns following the US-Israeli attacks on Iran and Tehran's response.

On Wednesday, the International Energy Agency announced that its 32 member countries would release 400 million barrels of crude oil from their strategic reserves – the highest amount in the agency's history.

Germany also announced plans to limit price hikes at petrol stations to no more than once a day.

Across the European Union, fuel prices have spiked the most in Germany, according to a review by the country's monopoly commission.

Excluding taxes and other duties, diesel prices at German petrol stations are up 44% this week compared to the week before the war, while the EU-wide average is 29%, the independent advisory body said.

Petrol prices in Germany are up by 29%, compared to 16% across the bloc, while crude oil prices rose by 27% over the period, the commission's chair said.

Crude oil prices have been volatile this week, with a barrel of North Sea Brent temporarily trading for more than $120 on Monday, before prices dropped significantly again during the course of the day.

On Tuesday and Wednesday, prices fell well below $100, before reaching $100 again on Thursday with no end in sight to the conflict in the Middle East.