Europe Sees Unprecedented Rise in Gasoline and Diesel Prices in Years
Gasoline and diesel prices in European Union countries have reached their highest historical levels in data available since 2005, surpassing the 100 euro threshold to fill a 50-liter car fuel tank on average for both fuels. Data from the European Commission, spanning over two decades, reveals that the average cost of fueling a car in the EU has never been higher than it is now. According to the latest price averages, filling a 50-liter tank costs approximately 103 euros for gasoline and 108 euros for diesel. Retail fuel prices have surged sharply since the outbreak of the conflict in the Middle East, exacerbating inflationary pressures. Energy inflation in the Eurozone jumped to 14.3% in August, up from 10.3% in July, according to the European Central Bank. The weighted average price per liter of gasoline in the European Union reached 2.063 euros as of September 14, while the price per liter of diesel hit 2.159 euros. These levels are the highest in the European Commission's data series, which began in 2005. The previous peak for gasoline was recorded in 2022, while diesel last approached its current level in April of this year. Price analysis shows significant variation within the EU; gasoline is cheapest in Malta at 1.34 euros per liter, while it is most expensive in Denmark at 2.56 euros. Diesel prices range between 1.21 euros per liter in Malta and 2.51 euros in Finland. These figures are based on the "Weekly Oil Bulletin" issued by the European Commission on September 17, drawing on prices collected on September 14, and include taxes. Fuel prices have been rising for several months following the outbreak of war with Iran at the end of last February and the subsequent disruptions to energy flows through the Strait of Hormuz. The price of global benchmark Brent crude rose to over $126 at the peak of the conflict, and was trading above $104 per barrel for next-month delivery on Friday. In contrast, Brent crude was around $72 per barrel before the war began. European crude supplies also face further challenges after Saudi Aramco informed at least two European refineries that they would not receive any oil under long-term contracts in October and November, following an attack on the kingdom's main pipeline leading to the Red Sea. Bloomberg, citing informed sources, reported that this decision applies to all European buyers. Global crude oil prices are not the sole factor driving up gasoline and diesel prices; refining costs and margins have also seen a notable increase, adding pressure on prices at fuel stations. Refining margins reflect the difference between the cost of crude oil and the price of refined products such as gasoline and diesel. While gasoline margins appear to have peaked, European Central Bank experts told Euronews Business that diesel margins will not reach their maximum levels before October/November.
