EU diesel hits record €2.24 per litre as Middle East war hits supplies

The average cost of diesel fuel in the European Union has soared to a record €2.24 per litre, a price surge that has been attributed to the ongoing conflict in the Middle East. This marks a 40% increase in price since the war began, according to data released by the European Commission. Twelve EU member states have now set new all-time high prices for diesel, including Belgium, Italy, Romania, and Poland.

Prices at filling stations have reached as high as €2.50 per litre in Denmark, the Netherlands, and Finland, and €2.44 in Germany. In Belgium, where the price hit a record, diesel averaged €2.43 per litre last week, up seven cents from the previous week. Italy saw a similar rise, with diesel prices climbing by seven cents to €2.35 per litre.

French filling stations, excluding overseas territories and Corsica, recorded an average price of €2.37 per litre, a slight decrease from the previous week. The European Commission's oil bulletin, which includes taxes that account for 40% of the pump price on average across the bloc, shows an aggregate average for the EU's 27 member states of €1.59 per litre in February, before the war in the Middle East began.

The price of diesel has been driven up by the closure of the Strait of Hormuz and a Houthi blockade of Saudi exports in the Red Sea, as well as Ukrainian strikes on Russian refineries.