A new study by Transport & Environment indicates that Europe currently pays a premium of €203 million per day for diesel due to geopolitical instability. This situation has led to increased costs for consumers, with drivers paying an additional €19 at the pump and truck operators facing extra expenses of €236 per week.
The European Union is particularly vulnerable to these price hikes because 38% of passenger cars on its roads are diesel-powered. Furthermore, 30% of the regional diesel fleet is over 15 years old. If current price levels persist until Christmas, the total expenditure on the diesel premium would equal the cost of providing a €2000 scrappage incentive for every diesel vehicle older than 15 years.
Refineries have reported record profits amid the market tightness for oil products, with eight major oil companies generating €7.5 billion in excess profits within the EU during the first half of 2026. Experts suggest that taxing these windfall profits could help fund electrification efforts to reduce long-term reliance on diesel.
To mitigate the impact of high prices, the report suggests short-term measures such as reducing motorway speeds by 10 km/h, promoting car sharing, and implementing eco-driving practices, which could collectively lower diesel demand by 15%. Long-term strategies focus on accelerating the transition to electric vehicles through government-funded scrappage schemes.
