EU fuel costs up €53B since Iran war, report finds

Rising road fuel prices have cost the European Union an estimated €53 billion since the start of the Iran war, equivalent to roughly €270 million per day, according to a report published on Wednesday by Brussels-based environmental group Transport & Environment. Most of that burden — €40 billion — came from diesel, which accounts for about 77% of EU road fuel consumption.euronews+1

Diesel Bears the Brunt

T&E estimates that higher diesel prices alone are adding €203 million a day to EU transport costs, with a further €67 million attributable to petrol. The figures compare fuel spending during the 28 weeks to 6 September with the same period a year earlier, adjusted for inflation.transportenvironment+1

The gap between crude oil and wholesale diesel prices exceeded $100 per barrel in early September, far above the typical $10 to $30 range, pointing to a shortage of refined fuel on top of more expensive crude. Diesel and gasoil exports from the Middle East and Russia together fell by nearly 75% in August compared with a year earlier, T&E said. TotalEnergies ↗ 2.03% chief executive Patrick Pouyanné has noted that transport costs for refined product tankers add roughly $50 per barrel, making Gulf exports to Europe increasingly unviable.euronews+1

Eurostat data released this week showed EU fuel prices surged 23.8% year-on-year in August, accelerating from 16.9% in July and 13.7% in June. On a monthly basis, diesel rose 8.3% and petrol 3.3%. Bulgaria recorded the steepest annual increase at 34.5%, followed by Lithuania, Finland, Germany and France, all above 27%. The weighted average EU diesel price reached €2.159 per litre on 14 September, a record in the European Commission's series dating back to 2005.indexbox+1

EU Response and Outlook

The European Commission adopted its Middle East Crisis Temporary State Aid Framework, known as METSAF, on 29 April, allowing member states to subsidize up to 70% of extra fuel and fertilizer costs for agriculture, fisheries and transport companies. Since then, the Commission has approved national schemes including a €52 million Romanian package for cattle farmers and a €30 million Portuguese program for agricultural and fishery firms.competition-policy.europa+2

French President Emmanuel Macron has written to Commission President Ursula von der Leyen calling for a relaxation of European fuel quality standards, while Portugal and Romania have moved to cut fuel taxes directly. Bulgaria announced one-off payments of €50 to nearly 550,000 vulnerable citizens.afp

No Relief in Sight

Supply could tighten further in autumn as demand for heating oil and freight rises while refineries undergo seasonal maintenance. The United States is also weighing a full or partial ban on diesel exports; President Donald Trump said on Tuesday that he supported the idea, though no formal ban has been announced. T&E argues that accelerating electric vehicle adoption offers the only durable shield against oil price shocks, estimating that nearly eight million electric cars in the EU avoided the use of about 46 million barrels of oil in 2025, saving €2.9 billion in imports.euronews