Euro Zone Refining Margins Reach Near-Record Levels Amid Global Fuel Shortages

The European Central Bank (ECB) blog has reported that euro zone refining margins have reached near-record levels in recent months, contributing to higher fuel prices. According to the post, diesel refining margins across the euro area increased to €0.35 per litre of retail prices in the first three weeks of July, up from €0.10 per litre before the U.S. and Israeli war in Iran.

Petrol margins rose from €0.04 of the retail price in February to €0.23 in July, with the contribution from margins expected to peak in August before declining to €0.16 by the end of 2027. This is close to levels observed at the end of February 2026.

The widening refining margins have been attributed to disruptions to refining operations and fuel exports in the Middle East, along with reduced Russian refinery throughput, which has tightened global fuel supplies.