Rhine at a minimum, prices skyrocketing: gasoline is also more expensive (cross-border guide)

Context

In a nutshell

• The Rhine is at its lowest level in recent times. - Transporting fuels to Switzerland is complicated. - Costs have gone up.

Key facts

• The transport of one tonne from Rotterdam to Basel has gone from 22-28 francs to 240 francs. - The price increase at the pump is estimated between 12 and 16 cents per litre of petrol. - Barges travel with greatly reduced loads.

The level of the river forces the barges to travel with greatly reduced loads. Particularly critical is the situation in the section of Kaub, in Rhineland-Palatinate, practically interrupted for ships coming from the ports of Northern Europe. Switzerland depends on the Rhine for about a fifth of its oil imports.

The situation is particularly critical for Swiss cities along the Rhine, such as Basel, Freiburg and Lausanne. These cities rely heavily on transporting fuels via the Rhine to refuel their gas stations and local industries.

Transporting fuels via the Rhine is a complex operation that requires the collaboration of different stakeholders, including shipping companies, control authorities and service stations. However, the current situation is putting a strain on the ability of these parties to work together to ensure the flow of fuels to Switzerland.

According to estimates, the rise in gasoline prices could reach 12-16 cents per

Operational details

The Federal Office for the Economic Supply of the Country (FOEN) reports "severely limited" transport capacities, which can however be compensated by resorting to rail, road, oil pipelines and company stocks. Distributors such as Volenergy, which supplies the BP, Shell and Ruedi Rüssel brands, are already turning to the warehouses and refinery in Cressier (NE).

The current situation is due to the reduction in oil production, which has led to a reduction in transport capacity and at the same time a reduction in gasoline demand. This has created a situation of gasoline scarcity throughout Switzerland, with concerns for the current summer season.

According to data from the FOEN, the capacity to transport gasoline has been reduced by 30% compared to the same period last year. This means that companies have to reduce gasoline production in order not to run out of stock. This is particularly worrying for the most remote areas of Switzerland, such as the Canton of Graubünden, where gasoline is already hard to find.

The situation is aggravated by the lack of gasoline stocks in the warehouses. According to data from Volenergy, gasoline stocks in warehouses were reduced by 50% compared to the same period last year. This means that companies have to resort to external warehouses to refuel, which is expensive and can cause delays in delivery.

The

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Key points

Federal Councillor Albert Rösti admitted that it may soon be necessary to tap into strategic reserves of petroleum products. "We have a heat record and the heatwave is extraordinary: the end is not yet in sight," said the Minister of Transport and Environment.

To significantly raise the Rhine, an isolated storm would not be enough: intense and prolonged rainfall would be needed. According to forecasts by the Swiss Weather Service, average temperatures for the coming months will be higher than the historical average. In particular, August 2023 could be the second warmest August in the last 100 years, after August 2003.

The record heat led to a significant increase in gasoline prices. According to oil market data, the price of 95 gasoline rose by more than 10 cents per liter compared to the same period last year. The current price is around CHF 1.35 per litre, which means that a full 60 litres costs around CHF 81.

The Swiss government is considering tapping into strategic reserves of petroleum products. According to the federal law on strategic reserves, the government can authorize the sale of fuels from the reserve in the event of an energy crisis. The law provides that the reserve must be filled within one year of its creation and that it must be managed by an independent body.

The Swiss government has already allocated 500

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Source: tio.ch