Prices of gasoline are decreasing!
Are Gas Prices Dropping for Good? Here's What Experts Predict
Exciting news for your wallet! Prices at the pump have been on a downward spiral for weeks now, and it looks like the good times ain't over yet.
In May, the average price for Super E10 was around €1.68 per liter, which is a 7-cent decrease from the start of the year, as per the ADAC. Diesel didn't lag behind, with a substantial 13-cent drop to €1.56 per liter, making May the cheapest month for refueling in 2025.
Expect more savings: Experts forecast that fuel prices will keep diving in the upcoming months.
E10 Heading towards €1.60 per liter?
ING Bank's chief economist, Carsten Brzeski, believes a drop of more than ten cents could occur. On average, he expects €1.60 per liter for Super E10. In the event of a "massive recession," €1.50 per liter could even be feasible.
Why? The global oil supply is projected to keep rising. The sheikhs of OPEC countries, including Saudi Arabia, have agreed to augment production by an additional 411,000 barrels per day in July. Each barrel equals approximately 159 liters of fuel.
But the party's not over yet! US experts predict OPEC countries will maintain increasing production by 411,000 barrels per month in August (as per Goldman Sachs) or even continue this trend till October (as per Morgan Stanley). "Following the latest announcement, there are few signs that the pace of production increases will slow down," write Morgan Stanley analysts.
The weak dollar also contributes to thisively situation. Since all oil transactions are conducted in US dollars, this makes fuel even cheaper in Euros.
Energy expert Prof. Manuel Frondel (RWI Institute) also anticipates relief for drivers: "The rise in supply will lead to a further decrease in prices." Rohstoffanalyst Carsten Fritsch (Commerzbank) predicts further price drops for the autumn.
However, the ADAC is still unimpressed. According to the automobile club, fuel prices should be several cents lower per liter already today.
The decline in fuel prices may extend to the retail sector, as lower transportation costs could lead to reduced product prices. consumers might experience a decrease in the price of goods, from energy-intensive items like electronics to everyday necessities like food.
The finance industry could also benefit from the dropping gas prices, as lower costs for logistics and transportation could boost profits for companies and potentially stimulate economic growth. This increase in disposable income could lead to increased consumer spending and investment in various sectors, thereby aiding the overall economy.
