EU Fuel Prices Have Surged Following Blockade
The blockade of the Strait of Hormuz has significantly increased petrol and diesel costs across the European Union.
Updated on Oct. 1, 2026 in Inflation
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Average diesel prices across the European Union rose by 40% between February 23 and September 21, 2026. The price spikes followed the blockade of the Strait of Hormuz by Israeli-US forces.
Why it matters
One-fifth of the global oil supply flows through the Strait of Hormuz, making it a critical chokepoint for energy security. Rising fuel costs disproportionately burden low-income households, who spend a larger percentage of their earnings on essential energy needs.
Euro 95 petrol prices rose from €1.637 to €2.092 per litre, while diesel jumped from €1.594 to €2.226 per litre. Malta remains the only EU nation where fuel prices have not changed.
The players
European Union
This is a political and economic union of 27 member states that is currently navigating significant energy supply chain disruptions.
Israeli-US forces
These military forces are currently engaged in a blockade of the Strait of Hormuz that has restricted global oil transit.
The details
The blockade has drastically shifted the affordability of fuel, with low-income earners in Bulgaria now requiring 15.4% of their monthly minimum wage to fill a 50-litre tank. Conversely, workers in Luxembourg only need 3.8% of their minimum wage for the same amount of diesel.
Timeline
23 February 2026: Pre-conflict baseline for fuel prices in the EU.
21 September 2026: End of fuel price observation period.
Macro View
This blockade follows a pattern of supply-side energy shocks set by the 1973 oil crisis. Current market volatility mirrors these past historical cycles where regional chokepoint disruptions quickly translated into localized inflation.
Minimum wage earners in Bulgaria saw the share of income required for a tank of fuel increase by 5.5 percentage points. These rising costs directly reduce household budget flexibility, leaving less money for other necessities.
The takeaway
Low-income households are significantly more vulnerable to supply chain shocks than higher earners due to the higher proportion of income spent on essentials. Budgeting for fuel costs remains a challenge for minimum wage earners as prices continue to fluctuate in the current climate.
Further reading
For more information on current price trends, visit the Inflation section.
Source note: This article includes information reported by Euronews English.
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