Germany’s automobile association ADAC reports that this past weekend, drivers in that country faced gasoline prices of €1.41 per liter (US$7.10 per gallon). This is just €0.03 below the historic high reached after hurricane Katrina.
The recent rise in the price of oil does not, in ADAC’s view, justify such increases in prices at the pump. A spokesperson suggested there was room for discounts, implying that refineries have increased their margins ahead of the summer driving season.
In addition, chronic refinery capacity shortfall in the US means that country has to import large quantities of finished gasoline and blending products on the spot market in Rotterdam, mostly supplied by European refineries. For reference, the EIA estimates that roughly 1 in every 8 gallons consumed in the US is imported. Refinery capacity is expanding in the US, but more slowly than demand is growing. Thus, the problem is actually getting worse each year.
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