8–10 cents cheaper

Prices Finally Fall: Relief at the Gas Station

Austrians are finally seeing the drop in crude oil prices reflected at the pump.(Bild: Mario Urbantschitsch)

Following Wednesday’s announcement of a ceasefire in the U.S. and Israel’s war against Iran, we’re now seeing the first relief at the gas station. Although the price of crude oil had already fallen on Wednesday evening, the effect didn’t reach drivers until Thursday at noon. Why prices could rise again on Friday...

Following the ceasefire in the Iran conflict on Wednesday, we’re now seeing the first relief at the pump. After the price of gasoline and diesel had already dropped on international markets Wednesday evening, the effect reached drivers around noon on Thursday.

The “Krone” compared prices at a gas station in northern Vienna. There, the price drop was 8 cents per liter for premium gasoline and 3 cents per liter for diesel. According to Öamtc, however, there were also significantly larger decreases.

Some stations up to 21 cents cheaper per liter
A gas station in Mödling (Lower Austria) is likely among the frontrunners. There, diesel was reduced yesterday at noon from 2.15 euros to just under 1.94 euros per liter—a drop of around 21 cents.

Due to the regulation that took effect on April 1, which is intended to limit the margins of oil companies, gas stations must pass on the lower purchase prices to consumers. Additionally, price increases are now only permitted at noon on Mondays, Wednesdays, and Fridays.

Many had already expected a price drop by noon on Wednesday. The reason for the delayed adjustment: Prices for fuel available at gas stations by noon the following day are calculated the day before between 7 p.m. and midnight. If the price of crude oil drops during the night, for example, this change can only be reflected the following day.

Calculation of Fuel Prices
Prices at the gas station are not directly based on the current crude oil price, but on so-called market prices for finished fuel (gasoline/diesel). These are calculated by agencies such as Platts and Argus, and global prices are based on them.

Many oil companies use precisely the average calculated the previous evening—as reported by the agencies—as the basis for their prices the next day. Therefore: If the crude oil price drops overnight, you won’t see it immediately at the gas station because the relevant market price for that day has already been set in advance. Only when these market prices change the next day does it affect fuel prices. Due to the fuel price cap, five cents must then be deducted from the retail prices, which is intended to reduce the profit margin.

Prices could rise again on Friday
Because the situation in the Middle East remains very tense despite the ceasefire,priceson the refined product exchanges rose again on Thursday. Öamtc expert Dominik Graf expects many gas stations to raise prices again by noon on Friday.

His tip: Better to fill up quickly beforehand. On Thursday, diesel costs 1.92 euros per liter at best, while premium gasoline is available starting at around 1.65 euros. The cheapest states are Upper Austria, Carinthia, and Styria.