EU Fuel Prices Hit Record Highs Amid Ongoing Middle East Conflict

Fuel prices in the European Union have hit record highs, with drivers paying an average of €103 to fill up their tanks with petrol and €108 for diesel. The surge is attributed to the conflict in the Middle East, which disrupted energy flows through the Strait of Hormuz and drove international benchmark Brent crude prices above $126 per barrel.

According to the European Commission's latest Weekly Oil Bulletin, published on 17 September, prices varied greatly across the EU. Petrol was cheapest in Malta at €1.34 per litre and most expensive in Denmark at €2.56, while diesel ranged from €1.21 in Malta to €2.51 in Finland.

Refining costs and margins have also contributed significantly to the price increase. ECB experts told Euronews Business that diesel margins are expected to peak in October, with refining margins making a large contribution to diesel prices at the current juncture.

The European Central Bank has warned of renewed disruption of energy supplies causing energy prices to rise further and for longer than currently expected. Experts say an end to the Middle East conflict and restoration of global refining activity would be key to bringing prices down.