Railway repairs and receding Rhine River trigger fuel concerns in Germany

Issues with Germany’s railway lines and low water levels in the Rhine River are limiting the German government’s ability to supply fuel to the country. This situation has led to price increases, according to Alfred Stern, CEO of the Austrian oil and gas company OMV, on Friday.

“Low water levels are becoming a problem, as they limit the possibility of transporting goods via waterways. There are also several railway issues in Germany,” said Stern. “All of this is constraining the supply chain, which I believe is causing fuel prices, and specifically middle distillate prices, to remain at their current levels.”

Stern added that OMV supplies kerosene directly to Germany via pipelines to Munich Airport to help meet the demand for aviation fuel in the country.

Services from the German railway operator, Deutsche Bahn, have been repeatedly disrupted in recent months due to sabotage, and in June, trains across the country came to a halt due to a communications system failure. The operator is also known for frequent delays; Transport Minister Patrick Schnieder stated in March that these issues, alongside outdated infrastructure, could pose a threat to the nation’s democracy.

Furthermore, the Dutch Ministry of Infrastructure and Water Management reported on Wednesday that the logistical situation is worsening as the Rhine River’s water level drops to its lowest recorded point.

Meanwhile, OMV is one of Austria’s largest companies, engaged in the exploration and production of hydrocarbons across Europe, the Middle East, North Africa, and the Asia-Pacific region, employing 15,936 people.