The growing demand for diesel by the German agricultural sector has reported a rise of nearly 14% in diesel sales in the less than two weeks ending March 15.
This upward trend is attributed to stronger demand from sectors such as agriculture, construction and transportation. Analysts anticipate that this consumer interest will intensify in the near future, especially among farm workers.
Growing demand for diesel
Diesel production in Germany faces significant constraints. One example is Bayernoil’s 215,000 barrels per day (b/d) capacity refinery in Neustadt-Vohburg, which started a planned maintenance process at the end of February. This maintenance, estimated to last about four weeks, has rendered the Vohburg plant, which has a capacity of 125,000 b/d, inoperative.
These circumstances have resulted in a decrease in the availability of availability of distillates, particularly particularly fuel used for heating purposes. In addition, Shell’s Wesseling refinery, with a production of 147,000 b/d, has seen its capacity reduced due to a failure in its desulfurization unit at the beginning of the current month, and so far, there are no official signs of normalization in its operation.
On the other hand, the Karlsruhe refinery, with a capacity of 310,000 b/d belonging to the Miro consortium, is expected to start a scheduled shutdown next month , which could contribute to the restriction of diesel supply.
Limited supply for Germany
To date, the supply has been able to meet current demand. However, if demand continues to increase and refinery production remains limited, it is possible that Germany will increase its dependence on diesel imports.
In addition, after overcoming a unit breakdown, the 230,000 b/d Schwedt refinery, operated by the PCK consortium, has restored production to normal levels. However, an increasing volume of this product is being exported to Poland.
Polish operators, after emptying their reserves to accommodate the transitional gasoline available from March 1 to April 30, have replenished their inventories, mainly with gasoline imported from the Schwedt refinery, a situation that has led to an increase in prices in the region.
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Source: Argus Media
Photo: shutterstock
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