Europe fuel price surge

In early July 2026 the Czech Republic extended its temporary fuel‑price cap and cut the diesel consumption tax as world oil prices rose sharply after Middle‑East tensions and the closure of the Strait of Hormuz. Austria soon saw diesel climb about 20 % to just over €2 per litre, prompting trade unions to demand tighter caps on station margins.

By late July the spike had spread across the continent. Brent crude breached $100 per barrel following attacks on Red Sea shipping routes and ongoing Iran‑U.S. hostilities, pushing diesel above €2 per litre in Austria, to €2.18‑2.20 in Italy and €2.20 in Germany. Gasoline rose to around €2 per litre in Italy and €2.17 in Germany. Governments debated short‑term tax relief: Italy examined a “mobile excise” system and a temporary diesel tax freeze, while Germany let a fuel‑tax rebate lapse and compensated by raising tobacco taxes. Consumer groups called for quicker relief as households faced billions of euros in extra fuel costs.

On 25 July, price data showed Italy’s diesel above €2.16 per litre and gasoline near €2.0, the Netherlands’ diesel at €2.24 (up 18 %), Germany’s gasoline at €2.17 and diesel at €2.20, Austria’s Salzburg region over €2, and Luxembourg border stations stable at €1.889. Italy’s government announced a mobile‑excise decree within days and a tax‑freeze for August. Austrian unions reiterated demands for stricter margin caps, and German opposition parties pressed for a fuel‑price cap. The surge remains linked to persistent Middle‑East oil tensions.