The cost at the pump increasingly reflects a shortage of finished fuel, not simply expensive crude oil.
BRUSSELS, BELGIUM
European petrol and diesel prices remain close to historical records even though Brent crude is trading well below its 2026 peak. Brent stood near $95 per barrel after fluctuating between approximately $73 and $126 since late February. Across the European Union, however, petrol averaged €1.95 per litre and diesel €2.04 during the week beginning August 31.
The difference emerges between the oil well and the fuel pump. Crude must be transformed into petrol, diesel and other products at refineries. Available refining capacity has become severely constrained by damage and disruption in the Middle East and Russia, high operating rates in Europe and the United States, maintenance requirements and limited inventories of finished products.
The refining margin for European Eurobob E5 petrol reached approximately $62.07 per barrel above Brent, narrowly below its 2022 record. European diesel futures recorded an unprecedented premium of $78.91 per barrel before easing slightly. These margins indicate that processing capacity and fuel scarcity are adding an exceptional cost beyond the market price of crude.
Europe is particularly vulnerable because it depends heavily on imported diesel and kerosene. Since reducing purchases from Russia, European buyers have relied more on the United States, India and the Middle East. Restrictions on Russian and Middle Eastern exports have forced Europe to compete with Turkey, Brazil and other importers for the same supplies. Gasoline inventories in the Amsterdam, Rotterdam and Antwerp hub recently fell to their lowest level since September 2021.
Taxes, transportation and retail costs further separate crude prices from what motorists pay. Excise duties are generally fixed per litre, while value-added tax is applied to the total pre-tax price. Even a fall in crude may therefore produce only gradual relief, particularly while inventories remain low. A sustained reopening of the Strait of Hormuz, restored exports, reliable refinery operations and stock rebuilding would all be needed for a substantial decline. Until then, expensive diesel will continue affecting not only drivers but also agriculture, construction, freight and food prices across Europe.
Detrás de cada dato, la intención. / Behind every data point, the intention.