Record-high diesel prices are placing significant pressure on the European economy. This leads to increased transportation costs, creating difficulties for farmers and businesses amid supply disruptions from Russia and the Middle East. The already overburdened global diesel market is facing an even greater deficit.
Record Cost Figures and Market Shortage
According to the latest weekly oil bulletin from the European Commission, the average retail price of diesel in the European Union (EU) reached a record level of 2.23 euros per liter (approximately $2.54/liter). Wholesale prices have also risen to unprecedented levels: according to Platts, ultra-low sulfur diesel delivered to Northwest Europe reached $1,642.25 per ton on September 15, the highest since the index began in 2007. According to the IEA, diesel accounts for nearly 30% of global oil demand, and exports from the Gulf region and Russia have dropped by about 1.6 million barrels per day compared to February.
Scale of the Problem for Logistics and Industry
The price surge raises concerns that higher transport costs will increase inflationary pressure. According to the European Automobile Manufacturers Association, approximately 96% of trucks currently operating in the EU use diesel, and among new trucks registered in the first half of 2026, this figure remains at 92.1%. In Germany, the BGL estimated that fuel accounts for roughly one-third of total transport business costs, meaning a 10% increase in diesel prices leads to a 3% rise in overall operating expenses. Europe's additional daily costs reach 203 million euros.
Government Response Measures
European countries are taking various response measures to stabilize the situation. France is allowing the continued sale of certain grades of summer diesel into the first half of November, Germany plans to temporarily cut fuel taxes starting October 1, and Finland and Latvia are introducing emergency support for farmers and lower excise duties. The situation is further complicated by the risk of US diesel export restrictions, as the US accounted for about half of EU diesel imports in August.
