Diesel Price Developments

We are currently watching the events in Ukraine with horror and dismay. In addition to the unimaginable human tragedy unfolding in the country, the war in Ukraine is causing immense economic consequences, directly impacting our company. In particular, the skyrocketing diesel prices are hitting the transport industry hard. According to the OMR, the net price of diesel in December was still at 114.79 euros per 100 litres, but following the Russian attack, it increased by more than 60 percent to around 185 euros per 100 litres in just a few days. Since diesel fuel costs account for approximately one-third of total expenses in the sector, this translates into an additional burden of more than 20 percent. For many transport companies, this has reached proportions that threaten their very existence, as record diesel prices in some cases significantly exceed their financial limits.

“There is an impending threat of widespread insolvencies in the German logistics and transport industry, which would put supplies for people and industry at risk.”

— Prof. Dr. Dirk Engelhardt, Spokesman of the Board of Management of the Federal Association of Road Haulage, Logistics and Disposal (BGL).

Representatives of the transport industry across Germany emphasize that, in this context, passing on higher prices to customers will be unavoidable. Furthermore, we are currently unable to estimate whether and when prices will recover or if the upward trend will continue. Therefore, it is essential that the parties involved react as transparently and flexibly as possible, with adjustments in all directions of diesel price developments. With retroactive effect from March 1, 2022, we will present our rates for transport services and freight only in combination with a diesel price escalation clause, with fuel costs communicated separately.

To safeguard the economy and logistics in the long term, immediate joint solutions must be found that take these developments into account. After all, the economy cannot exist without logistics, and logistics cannot overcome the current crisis efficiently without partnership models that can easily adapt to economic changes.