Geopolitical tension, shipping risks and national taxation are widening Europe’s fuel-price divide.
BRUSSELS, BELGIUM
Diesel prices are climbing sharply across Europe as instability surrounding two strategic maritime routes increases pressure on energy markets. In Germany, some filling stations raised diesel prices by approximately €0.20 per litre, reaching around €2.56 on Saturday. Long queues formed before the scheduled midday adjustment, as national rules allow prices to rise only once per day.
The immediate concern involves the Bab el-Mandeb Strait, where Houthi forces have threatened to impose a permanent blockade. A serious interruption would force commercial vessels to avoid the Red Sea and travel around Africa’s Cape of Good Hope, extending delivery times and increasing transportation costs. Continued tensions in the Strait of Hormuz are simultaneously threatening another crucial route for global oil and liquefied natural gas exports.
Germany’s average diesel price had already exceeded €2.38 per litre before the latest increase. However, the final amount paid by motorists reflects more than crude-oil prices. Taxes, environmental requirements and regulatory costs create significant differences between European countries.
Spain currently has the European Union’s second-lowest diesel price, at approximately €1.795 per litre. Malta remains the cheapest market because its government has frozen fuel prices since 2020, maintaining diesel at €1.21 per litre. Bulgaria and Hungary also remain among the bloc’s less expensive countries.
A study commissioned by the German fuel industry found that Germany would have Europe’s cheapest diesel before taxes, levies and certain regulatory expenses. Compliance with national carbon-reduction requirements adds an estimated €0.18 per litre, compared with between €0.03 and €0.09 in most other EU countries. The German government, however, argues that major energy companies also bear responsibility and is preparing a national refinery strategy.
Europe’s fuel crisis therefore reflects the interaction of geopolitical insecurity, constrained supply routes, national taxation and climate policy. Spain’s comparatively low prices offer motorists some protection, but an extended disruption to global energy flows could eventually narrow that advantage.
Energy security is measured not only in supply, but in who can afford it.