Record fuel costs across the bloc
European diesel prices reached an average of 2.23 euros per litre on 21 September, up from 2.16 euros a week earlier, according to European Commission data released on Thursday. The increase establishes new price peaks across 19 European Union member states, including Germany, France, and Italy. Denmark and Finland recorded the highest diesel prices in the bloc at 2.56 euros per litre, followed by Germany at 2.46 euros, Belgium and France at approximately 2.40 euros, and Italy at around 2.30 euros. Gasoline costs followed similar trends, with Danish unleaded 95 reaching up to 2.60 euros per litre, driven in part by a 25% national value-added tax. These pump prices incorporate national duties, which account for an average of 40% of the retail price across the European Union.
International supply constraints and US export threats
The price increases stem from global supply disruptions tied to Middle Eastern and Ukrainian conflicts. Tensions around the Strait of Hormuz, Houthi attacks on Saudi exports in the Red Sea, and Ukrainian drone strikes against Russian refineries have constricted global refining output. Pressure mounted further after Donald Trump expressed support on Tuesday at the United Nations General Assembly for a potential 90-day ban on American diesel exports. The United States currently ships over 1.5 million barrels per day, ranking as the world leading diesel exporter. Any stoppage would alter European supplies directly, as the bloc sourced 50% of its imported diesel from the United States in August.
The European Union views with concern reports that the United States is considering banning diesel exports. Any disruption would risk negative consequences for both parties.
Disparities in household purchasing power
The surge in fuel expenses places uneven burdens on households depending on location and domestic wage levels. In France, an employee earning the gross minimum wage can buy five fewer 60-litre tanks of diesel in September than in January. An analysis of minimum-wage labor indicates that a worker in Luxembourg must work 5 hours, 40 minutes, and 24 seconds to afford a 50-litre tank of diesel at 2.08 euros per litre. In contrast, a Croatian worker earning a minimum wage of 6.86 euros per hour must work 14 hours, 53 minutes, and 57 seconds to purchase 50 litres at 2.05 euros per litre. Rural populations experience the heaviest impact, with roughly 90% of rural French workers relying on personal vehicles for daily commuting compared to under 60% in urban centers.
National fiscal policies and relief measures
European governments have deployed targeted support measures, though think tank Bruegel reports total financial commitments remain lower than spending during the 2022 energy crisis. Countries such as Spain and Sweden have contained pump price growth through substantial reductions in fuel taxes enacted since late February. In Denmark, where cross-border drivers travel to Sweden to buy gasoline at 1.60 euros per litre, the government maintains fuel tax rates while offering tax allowances for commuter travel. In France, authorities raised the tax-exempt ceiling for employer-funded fuel allowances from 600 euros to 1,000 euros starting 1 October, extending through 31 December.
Lowering taxes on gasoline and diesel is not really an ecological measure. It would be political suicide for them.