No relief at the pump: EU diesel hits new record of €2.24 a litre

The average price of diesel at fuel stations in the European Union has reached a record high of 2.24 euros per litre, according to data published by the EU Commission on Thursday. This equates to approximately US$9.60 per US gallon, up from €1.59 per litre just before the war in the Middle East began. Twelve EU nations recorded their highest ever prices for diesel, including Belgium, Italy, Romania, and Poland, according to an analysis by AFP using weekly data from national authorities since 2005.

The spike in diesel prices is primarily attributed to the ongoing conflict in the Middle East, which has disrupted fuel supplies from the region. Denmark, the Netherlands, Finland, and Germany reported diesel prices surpassing €2.50 per litre, while Belgium saw an all-time high of €2.43 per litre. Italy's diesel price increased by seven cents to €2.35.

French diesel prices averaged €2.37 per litre, showing a slight decrease. The European Commission's oil bulletin includes taxes, which account for about 40% of the pump price on average across the bloc, but does not factor in targeted subsidies like those for high-mileage drivers in France. The EU's overall average diesel price, weighted by each country's fuel consumption in 2024, stood at €1.59 per litre in February, prior to the war in the Middle East.

The price surge since February has been driven by the closure of the Strait of Hormuz, a vital waterway for Gulf fossil fuels, a Houthi blockade of Saudi oil exports in the Red Sea, and Ukrainian strikes on Russian refineries.