Fuel Prices Persist Despite Lower Crude Oil Costs

European fuel prices remain high despite Brent crude trading between $73 and $126 a barrel since February. Petrol and diesel prices are influenced by refining capacity, not just the price of crude oil.

According to Kpler's lead analyst Sumit Ritolia, 'the key reason for the widening gap between crude and European fuel prices is that this is increasingly a refining and product-supply problem rather than simply a crude-supply problem.'

Ritolia notes that crude may be available, but the capacity to convert it into diesel has become much tighter. Diesel powers nearly 90% of EU passenger cars.

European governments have temporarily reduced fuel taxes or introduced support measures since the energy shock began, but petrol and diesel prices remain close to their historical highs.