French diesel hits new record as Europe’s fuel crisis deepens

Europe's diesel crisis deepened over the weekend as fuel prices hit fresh records across the continent, prompting a patchwork of government responses that underscores a growing divergence in energy policy. France recorded a new all-time high diesel price on Sunday, September 20, while Hungary has chosen targeted subsidies over a return to price caps and Ireland faces pressure to delay planned fuel tax increases.

Record Prices Across Europe

French diesel prices reached nearly €2.41 per litre on Sunday morning, according to an AFP analysis of more than 8,700 filling stations, breaking a record set just one day earlier. The EU weighted average diesel price hit €2.26 per litre on September 17, a 38 percent increase since late February, according to the International Road Transport Union. Euronews Euronext N.V. reported that diesel has surged nearly 40 percent since the start of 2026.dailysabah+2

The price spike stems from disruptions tied to the Middle East conflict and reduced Russian refining output. Middle Eastern diesel exports fell by more than 50 percent between March and August, according to Reuters Thomson Reuters Corporation ↗ 1.10%, while Russia extended a full diesel export ban through the end of October. European diesel inventories have fallen to a 12-year low.dailynewshungary+1

Hungary's Subsidy Over Price Cap

Hungarian Prime Minister Péter Magyar announced on September 11 that the government would provide a monthly subsidy of HUF 5,000 (about $16) to owners of diesel-powered vehicles with engines of 150 horsepower or less, with payments running through December. Farmers will also be able to reclaim excise tax on diesel until the end of the year. The first payments are scheduled for September 30.reuters+2

The approach marks a deliberate shift from the fuel price cap introduced by the previous government under Viktor Orbán in March, which Magyar's government phased out in June after international oil prices temporarily eased. Magyar has said the targeted subsidy reflects the approximate difference between current market prices and the former protected price for a typical refueling.english.news+2

A Continent Divided on Policy

Germany announced a €0.17 per litre fuel tax cut on Friday, effective October 1 through the end of the year, in a relief package worth €2.5 billion. Spain doubled its diesel tax cut to 20 cents per litre from September 1.euronews+2

Ireland, however, is moving in the opposite direction. The government plans to begin restoring temporary fuel excise reductions starting November 1, adding an estimated 10 cents per litre to diesel when the restoration of the National Oil Reserves Agency levy is included. RTÉ reported the full restoration would add 32 cents per litre to diesel by February 2027. The Irish Road Haulage Association has called on the government to halt the increases, warning they would place "intolerable pressure" on hauliers and consumers.rte+1