Before the Iran war vs now: How much of a worker’s wage is needed to fill a 50-litre tank?
A 50-litre diesel tank costs the equivalent of 15.4% of Bulgaria’s gross monthly minimum wage, compared with 3.8% in Luxembourg, as fuel prices have risen since the Iran war began.
In Bulgaria, the cost of filling a 50-litre diesel tank now consumes 15.4% of the country's gross monthly minimum wage, a significant rise from just 9.9% before the Iran war began. This trend highlights the mounting strain on workers in Europe's lowest-paid countries. Since the Israeli-US joint attack on Iran disrupted the Strait of Hormuz, fuel prices have surged globally, with European consumers seeing a 40% increase in diesel prices between February 23 and September 21, according to the EU Weekly Oil Bulletin.
Low-paid workers, who spend a larger portion of their income on essentials like housing, food, and transport, are hit hardest by these rising fuel costs.
Senior researcher Torsten Müller from the European Trade Union Institute explained to Euronews Business that low-income households are particularly affected because they allocate a larger share of their income to essential expenses. The comparison of fuel prices and minimum wages across Europe reveals that in 22 EU countries and Turkey, as of September 21, the percentage of the monthly minimum wage needed to fill a 50-litre petrol tank ranged from a low of 3.3% in Luxembourg to a high of 13.4% in Bulgaria.
Diesel prices were even more extreme, with the share needed varying from 3.8% in Luxembourg to a staggering 15.4% in Bulgaria. Countries like Latvia, Turkey, Romania, Czechia, Estonia, and Hungary saw the share exceed 10%, indicating a heavier financial burden on workers in these nations.
The situation is particularly dire where the minimum wage is low, and fuel costs are high. For instance, a minimum wage earner in Bulgaria can now buy only 324 litres of diesel, compared to the 1,311 litres possible for a worker in Luxembourg with the same wage. Torsten Müller stressed that the disparity in minimum wages, even when adjusted for price level differences, explains why a 50-litre fill-up takes such a significant chunk of earnings in some countries.
For low-income households, the rising cost of fuel could lead to job loss, especially in areas without reliable public transport, exacerbating the economic crisis faced by both workers and companies struggling with labor shortages.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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