The average price of diesel across the European Union has reached a record high of 2.24 euros per litre, equivalent to $9.60 per US gallon. This represents a significant increase from 1.59 euros per litre before the war erupted in the Middle East, according to EU Commission data. The price surge is attributed to the conflict's impact on fuel supplies. The data reflects prices at filling stations, either at the start of the week or at the end of the previous week, depending on the country.
Twelve EU member states have recorded fresh all-time highs, including Belgium, Italy, Romania, and Poland. In Denmark, the Netherlands, and Finland, the price of diesel has exceeded 2.50 euros per litre, while in Germany, it reached 2.44 euros. The rising fuel costs are a concern for road freight transport and farming machinery, which heavily rely on diesel. The European Commission's oil bulletin includes taxes that vary between countries, accounting for 40 percent of the price paid at the pump.
In Belgium, diesel prices have hit a record high of 2.43 euros per litre, compared to 2.39 euros the previous week. Italy has seen a seven-cent increase to 2.35 euros, while French filling stations are charging an average of 2.37 euros per litre. Across the EU, there was a slight average rise of one cent per litre over the last week. The aggregate average for the EU's 27 member states is weighted according to each country's fuel consumption in 2024.
The conflict in the Middle East has led to the effective closure of the Strait of Hormuz, a key waterway for fossil fuels from the Gulf. Additionally, a Houthi blockade of Saudi exports in the Red Sea and Ukrainian strikes on Russian refineries have contributed to the price increase. These disruptions have significantly impacted global fuel supplies, leading to higher prices.
The EU Commission data provides a comprehensive overview of diesel prices across member states. The prices are based on weekly submissions from national authorities since 2005. The data takes into account taxes but does not include targeted subsidies, such as assistance for high-mileage drivers in France.
The record-high diesel prices are a concern for the European economy, particularly for industries that rely heavily on fuel. The situation is being closely monitored by EU authorities, who are assessing the impact of the Mideast conflict on fuel supplies. The European Commission is working to address the issue and mitigate the effects of the price surge.
The current diesel price of 2.24 euros per litre is a significant increase from the pre-conflict price of 1.59 euros. The EU is exploring ways to address the supply disruptions and stabilize fuel prices. The bloc is also considering the potential impact of a possible US diesel export ban, which has been described as a "bad idea" by the EU.
Key points
- EU diesel prices have reached a record high of 2.24 euros per litre due to the Mideast conflict.
- Twelve EU member states have recorded fresh all-time highs in diesel prices.
- The conflict has led to supply disruptions, including the closure of the Strait of Hormuz and Houthi blockade of Saudi exports.
