Water Levels Impact Fuel Supply
Germany’s transport chains have been severely disrupted due to low water levels in its rivers, particularly the Rhine. The impact is evident in the growing fuel shortages, causing price hikes at gas stations. In some cases, fuel stations have been forced to halt the sale of gasoline and diesel entirely, according to Stephen Zieger, Executive Director of the National Federation of Independent Filling Stations (BFT). Major companies, including Thyssenkrupp and BASF, also had to limit production temporarily due to supply constraints.
Limited Transport Capacity Exacerbates the Issue
A spokesman for Aral, a major filling station operator, explained that fuel reserves exist in storage facilities along the Rhine. However, tankers transporting fuel can now only carry half or even less of their usual capacity due to the low water levels. While some transportation gaps have been filled by road transport, the shortage of tankers, combined with holiday truck driving bans on Reformation Day and All Saints’ Day, has further worsened the situation. BFT Director Zieger stated that predicting which stations would be affected remains difficult.
Rising Fuel Prices Amidst Falling Oil Costs
The shortages have driven up fuel prices significantly. In October, the national average price for a liter of gasoline rose from €1.34 to €1.42, while super petrol increased from €1.49 to €1.53 per liter. Ironically, this price surge occurred despite a drop in crude oil prices. The cost of a barrel (159 liters) of North Sea Brent crude oil fell by 11% in October to €66.40. Experts and industry associations have attributed the continued high fuel prices to the persistent drought and logistical disruptions rather than crude oil costs.
Ongoing Drought Reduces Water Levels
Germany has been experiencing persistent drought conditions since the spring, leading to further declines in river water levels. The Rhine and its tributaries play a crucial role in the country’s oil and raw material supply chains. Many refineries rely on inland waterways to transport their finished products to storage facilities before distribution via rail or road. With water levels critically low, this transport system has been significantly strained.
Government Releases National Oil Reserves
In response to the crisis, Germany’s Ministry of Economic Affairs released part of the national oil reserve along the Rhine in October. Approximately 70,000 tons of gasoline, 150,000 tons of diesel, and 56,000 tons of kerosene were made available to petroleum stockpiling companies. These companies have the discretion to withdraw supplies as needed. The national oil reserve was established during the 1970s oil crisis to mitigate supply disruptions and currently holds around 24 million tons—enough to sustain Germany’s needs for 90 days.
Industry Struggles with Supply Disruptions
The steel giant Thyssenkrupp struggled to secure sufficient raw materials for its Duisburg steel mill in October, forcing the company to declare an emergency for its customers. By early November, rising Rhine water levels allowed the company to restart steel production and work toward normalizing its supply chains.
Similarly, BASF had to scale back production at its Ludwigshafen plant due to limited transport capacity. Under normal conditions, the chemical company transports 40% of its goods via inland waterways, but the low water levels drastically reduced shipping capacity.
Refinery Explosion Worsens the Situation
In addition to the drought-related disruptions, an explosion at a refinery in Vohburg, Bavaria, in September further strained fuel supplies in southern Germany. A spokesman for the petroleum trade association noted that the loss of production worsened the already difficult situation. While the government’s release of fuel reserves provided some relief, it has not been sufficient to resolve the crisis entirely. Experts warn that a lasting improvement in supply chains will only be possible if water levels rise significantly.
The low water levels of the rivers mess up transport chains in Germany. Because of the low water on the Rhine, for example, in the case of gasoline and Diesel to supply shortages increase, causing the prices to the gas stations. In some cases, these had to discontinue the sale of gasoline or Diesel, said Stephen Zieger, Executive Director of the national Federation of independent filling stations (BFT). Also companies such as Thyssenkrupp and BASF, were temporarily forced to restrict production.
“In the tank, not in camps along the Rhine have enough fuel, because the tank only half or even less gasoline and Diesel ships can transport,” said a spokesman of the filling station operator Aral. The transport capacity of the ships was to the car just to replace a part due to load. Holiday driving bans for Trucks on reformation day and all saints day would have complicated the Situation. Which gas station to meet it, don’t be predictable, said BFT-managing Director, Zieger.
The shortages have also led to rising petrol and diesel prices. The price for a litre of petrol increased from the beginning to the end of October in the national average of 1.34 euros to 1.42 euros. Super petrol increased in the same period from EUR 1.49 to 1.53 euros per Liter. The crude oil prices fell in October, actually, a Barrel of crude oil (159 litres) of North sea Brent oil fell by eleven percent to the equivalent of 66,40 euros. Also, the prices of oil remain high. As the reason for the high prices, experts and industry associations, the consequences of the drought.
The persistent drought since the spring, the water levels of the rivers in Germany continues to decline. Especially in the Rhine and its tributaries play an important role in supplying Germany with Oil and other raw materials. On the river, major refineries, where the finished products via inland waterways to storage tanks to be transported. Only there, the switch to Rail or road.
National Oil reserve released
The economy Ministry had released in October, parts of the national Oil reserve along the Rhine. The stocks of 70,000 tons of gasoline, and 150,000 tons of Diesel and 56,000 tonnes of kerosene were offered to the member companies of the petroleum stockpiling Association (EBV). The oil companies decide for themselves whether they want to lose weight the quantities. The EBV was established during the oil crisis in the 1970s, to a possible interruption in the Oil supply cushion. He holds enough crude oil and oil products to Germany for 90 days supply a total of around 24 million tonnes.
The group, Thyssenkrupp had not received in October, sufficient raw materials for its Duisburg steel mill, and therefore, a customer with a state of emergency declared. At the beginning of November, the company said, to drive the steel production in the face of rising water levels of the Rhine and organize the normalization of the supply relationships. Also, the chemical company BASF had to adjust in October, the production in Ludwigshafen, Germany, as the plant could only be to a few ships. Normally, BASF promoted in Ludwigshafen, Germany, 40 per cent of goods by inland waterway.
The mineral oil trade Association, also called the Explosion in a refinery in the Bavarian town Vohburg on the Danube in September as a reason for gaps in provision. The loss of production, worsening the Situation in southern Germany, a spokesman said. The release of fuel from the petroleum reserve have led to any radical improvement. A sweeping relaxation in the supply of it will give only in the event of rising water levels.
