EU petrol and diesel hit record prices as energy inflation intensifies

  • EU petrol and diesel reached record average prices of €2.063 and €2.159 per litre on 14 September.
  • A 50-litre tank cost about €103 for petrol and €108 for diesel, while eurozone energy inflation reached 14.3% in August.
  • Supply disruptions, refining margins, taxes and geopolitical developments remain central to the outlook for European fuel prices and inflation.

European energy and inflation pressures intensified as conflicts disrupted oil and gas routes and flows through the Strait of Hormuz. European Commission data showed EU petrol averaging €2.063 per litre and diesel €2.159 on 14 September, the highest readings in its series since 2005, putting the cost of a 50-litre tank at about €103 and €108 respectively. Eurozone energy inflation rose to 14.3% in August from 10.3% in July, while the broader euro-area inflation rate rose to 3.2% from 2.9% in the older reporting period. Brent crude rose above $126 a barrel during the conflict and was above $104 for delivery the following month, compared with about $72 before the war. Refining margins, distribution costs, excise duties and value-added tax also contributed to pump prices. The European Central Bank warned that renewed energy-supply disruptions could push prices higher for longer, while markets and prediction-market analysis pointed to a heightened likelihood of new crude-oil highs. OPEC, the IEA, energy ministers and upcoming policy announcements remain important indicators for supply responses.

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