High diesel prices cost EU over $220M daily

The Brussels-based environmental group Transport & Environment said on Wednesday that rising diesel prices have imposed an additional daily cost of €200 million ($228 million) on the European Union economy. The increase stems from supply disruptions caused by Middle East conflicts and Russian refinery production cuts, according to the organization.

Supply constraints and economic toll

The organization noted that geopolitical tensions have widened the gap between crude oil and diesel prices, reducing the supply of refined petroleum products. It said road transport alone adds €270 million in daily costs to the European economy, with diesel accounting for €203 million of that total. The report stated that since the US and Israeli attacks on Iran began, the EU has faced €40 billion in extra costs from road diesel consumption.

Consumer impact

Diesel vehicles comprise 38% of passenger cars on EU roads, and road transport accounts for 77% of the bloc's diesel and gas oil consumption. The report said drivers now pay an average of €19 extra per tank, while truck operators face additional weekly costs of €236. It noted that 30% of diesel vehicles in Europe are more than 15 years old, leaving the region particularly exposed to price volatility.

Recommended measures

Transport & Environment suggested lowering highway speed limits by 10 kilometers per hour, promoting eco-driving techniques and expanding carpooling to cut diesel demand by 15% in the short term. It also recommended scrappage incentives for aging vehicles, faster electric vehicle adoption, windfall profit taxes on oil companies and increased electrification investment.