European Union energy officials held emergency talks on Friday as diesel prices across the bloc hit record highs, with Ireland, currently holding the rotating Presidency of the Council of the EU, playing a central role in coordinating the bloc’s response.
The European Commission convened a meeting of its Energy Union Task Force in response to the crisis, after Irish, French, German, Italian and UK officials held a joint phone call with the Commission on Thursday to discuss the surging cost of diesel. A spokesperson for Ireland’s Department of Climate, Energy and the Environment said the diesel market is “currently very tight,” pushing up prices for consumers worldwide, and confirmed the Commission and Ireland, as Council Presidency, are “closely coordinating with EU Member States to take stock of the situation and examine appropriate measures.”
The scale of the crisis is stark. The average retail price of diesel across the EU reached a record €2.24 per litre at the end of September, according to European Commission figures. New national price records were set in 12 of the bloc’s 27 member states, including Belgium, Italy, Romania and Poland. Prices passed €2.50 a litre in Denmark, the Netherlands and Finland, while Germany, Europe’s largest economy, averaged €2.44 a litre. In Ireland, diesel has climbed to well over €2 a litre. Since the start of 2026, the EU-wide average diesel price has surged by almost 40%, compared to a 29% rise for petrol over the same period.
Most analysts point to the ongoing war involving Iran as the main driver of the crisis, which has disrupted global supply and sharply reduced refining capacity. The International Energy Agency said in August that global observed oil stocks had fallen by around 410 million barrels since the conflict began in late February. Experts cited by the European Central Bank also point to a second factor: refining margins, the cost of turning crude oil into usable fuel, which are adding significantly to pump prices and are expected to peak only in October.
The crisis has triggered a tense standoff between Europe and the United States. According to Reuters, Washington has pressed Germany and France to release emergency diesel stocks, warning of a potential US export ban on diesel if they do not. US President Donald Trump has reportedly cooled on the idea of an export ban himself, amid concern it could push global prices even higher just weeks before the US midterm elections. The EU’s Oil Coordination Group, which includes the European Commission and national governments, has been contacting member states to establish a joint EU position on the US request.
Speaking on the sidelines of a G20 trade ministers’ meeting in Milwaukee, the EU’s trade commissioner, Maros Sefcovic, said he had discussed the global diesel market with US Trade Representative Jamieson Greer and expressed Europe’s desire for a coordinated approach to lowering prices. He warned that any move by the US to restrict diesel exports would be unexpected and could have a detrimental effect on Europe’s economic performance.
The EU’s Energy Commissioner, Dan Jørgensen, told Euronews that releasing strategic EU oil reserves remains “a possibility,” with member states discussing a coordinated release through the International Energy Agency that could add as much as 120 million barrels to the global market. He stressed, however, that any such release is ultimately a decision for each individual member state. French President Emmanuel Macron has separately proposed convening G7 leaders to discuss a coordinated release of strategic fuel reserves.
The surging cost of diesel, used widely in freight transport, agriculture and heavy machinery, is also becoming a growing concern for central banks. The European Central Bank has flagged rising oil and gas prices as an inflation risk, while Bank of England Governor Andrew Bailey has separately pointed to elevated refining margins as a further source of price pressure heading into the winter months.
