BRUSSELS
Rising diesel prices driven by geopolitical developments cost the EU economy an additional €200 million (around $228 million) daily.
The Brussels-based environmental organization Transport & Environment published a report on Wednesday on the economic impacts of rising diesel prices in Europe.
The report noted that conflicts in the Middle East and production cuts at Russian refineries reduced the supply of refined petroleum products.
The organization highlighted the widening gap between crude oil and diesel prices. It said rising fuel costs in road transport added a daily burden of €270 million to the European economy, with €203 million stemming from diesel consumption.
The document revealed that the total extra cost faced by the EU economy due to road diesel reached €40 billion since the US and Israeli attacks on Iran.
The report said road transport accounted for 77% of diesel and gas oil consumption in the EU. It added that diesel vehicles made up 38% of passenger cars on EU roads, making the bloc the world’s most vulnerable region to high diesel prices.
The report said EU diesel car users faced an average extra cost of €19 per tank, while truck operators incurred an additional €236 per week. It noted that 30% of diesel vehicles in Europe were older than 15 years.
The organization suggested that lowering highway speed limits by 10 kilometers per hour, promoting eco-driving techniques and expanding carpooling could reduce diesel demand by 15% in the short term.
It also recommended implementing scrappage incentives for old diesel vehicles, accelerating the transition to electric vehicles, taxing oil companies’ windfall profits and increasing investment in electrification.
