Prices for both fossil and renewable diesel are backed by industry players, including Siemens.
HAMBURG, Germany, March 4, 2025 — Argus, a global agency reporting on energy and commodity prices, has introduced a new online service. This service will provide monthly average prices for German HVO (hydrotreated vegetable oil), also known as renewable diesel, alongside prices for fossil diesel. The free platform is designed to enhance market transparency for transportation users at both the downstream and upstream levels, including distribution companies, logistics firms, and shippers.
Road transport companies are obligated to decrease their CO2 emissions, and one method to achieve this is by substituting fossil diesel with HVO. These companies have typically sought to understand HVO’s value relative to conventional fossil diesel. However, the price dynamics of these two fuels are influenced by distinct market fundamentals, leading to considerable variations in their price difference. For example, in 2024, the premium for HVO over fossil diesel fluctuated from €5/100 liters to €40/100 liters.
HVO is produced from waste materials like used cooking oil or “tall oil,” a byproduct of wood pulp. Price fluctuations in these feedstocks impact the price of HVO, but not diesel, which is refined from crude oil.
Germany’s greenhouse gas (GHG) quota regulations also affect the relative fuel prices. An increase in the price of GHG certificates raises the cost of diesel while lowering the cost of HVO, and vice versa. This is because diesel “consumes” GHG certificates, whereas HVO “produces” them.
Argus Media’s chairman and chief executive, Adrian Binks, stated, “We have collaborated closely with downstream transport companies in Germany to develop new monthly average prices that offer much-needed transparency in these complex markets. Understanding the different drivers of feedstock prices helps market participants make informed decisions as the transportation sector transitions to lower-carbon fuels.”
Dirk Grund, Global Commodity Manager for Ground Transportation at Siemens, commented, “We welcome Argus’s development of this new open service, which provides us and our service providers with a significantly improved understanding of HVO’s actual market value. This understanding is based on its fundamental drivers, rather than relying on an assumed price correlation with fossil diesel. Our strategic objective is to reduce carbon emissions across our transport operations, and accurate fuel pricing is crucial for achieving this.”
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About Argus Media
Argus is a leading independent provider of market intelligence for the global energy and commodity markets. We deliver essential price assessments, news, analytics, consulting services, data science tools, and industry conferences to clarify complex and opaque commodity markets.
Headquartered in London and employing over 1,400 people, Argus is an independent media organization operating from 30 offices located in the world’s major commodity trading centers.
Companies, trading firms, and governments in 160 countries worldwide rely on Argus data for decision-making, situation analysis, risk management, trade facilitation, and long-term planning. Argus prices serve as trusted benchmarks globally for pricing transportation, commodities, and energy.
Established in 1970, Argus remains a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.
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