PNN – Rising diesel prices, driven by geopolitical developments, are imposing an additional daily cost of over €200 million on the European Union’s economy.
According to the report of Pakistan News Network citing Anadolu; the surge in diesel prices resulting from geopolitical developments is costing the EU economy approximately €200 million—equivalent to around $228 million—in additional expenses each day.
On Wednesday, the Brussels-based environmental organization “Transport & Environment” released a report detailing the economic consequences of rising diesel prices in Europe.
The report states that conflicts in the Middle East and reduced output at Russian refineries have curtailed the supply of refined petroleum products.
Highlighting the widening gap between crude oil and diesel prices, the organization announced that rising fuel costs in the road transport sector are imposing an additional daily burden of €270 million on the European economy, with diesel consumption accounting for €203 million of that figure.
According to the report, the total additional cost imposed on the EU economy due to road diesel consumption has reached €40 billion since the US and Israeli attacks on Iran.
The report states that road transport accounts for 77% of diesel and gas oil consumption in the European Union. Furthermore, diesel vehicles make up 38% of passenger cars on EU roads, a fact that has made the region the most vulnerable in the world to rising diesel prices.
The organization reported that diesel vehicle owners in the European Union pay an extra €19 per tank refill on average, while fuel costs for truck drivers have risen by €236 per week. Additionally, 30 percent of diesel vehicles in Europe are over 15 years old.
The “Transport & Environment” organization has suggested that lowering highway speed limits by 10 km/h, promoting fuel-efficient driving habits, and expanding carpooling could reduce diesel demand by 15 percent in the short term.
The organization has also proposed implementing incentives for scrapping old diesel vehicles, accelerating the transition to electric vehicles, taxing the windfall profits of oil companies, and increasing investment in electrification.