EU Transport Fuel Prices Soar Amid Middle East War and Ukrainian Strikes

Transport fuel prices in the European Union have hit record highs due to the Middle East war and Ukrainian strikes on Russian refineries. Crude oil prices have surged from $70 per barrel before hostilities began at the end of February to around $100 currently.

Refined products, including diesel, petrol, and kerosene used in planes, face even greater upward pressure because Gulf nations, major producers and exporters of refined products, are facing surging maritime freight costs. Tankers designed for refined products carry fewer barrels than those used for crude oil, resulting in an additional transport cost of around $50 per barrel.

Repeated Ukrainian drone attacks on Russian refineries have also significantly reduced the global supply of engine fuels, particularly diesel, driving prices up and boosting operating margins for refiners. Governments across Europe are scrambling to avoid shortages as consumers pay varying prices for their engine fuels due to different approaches to taxes and subsidies.