Why are petrol and diesel so expensive despite crude oil not reaching record highs?

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-06 • Permanent link

Rising to the forefront of the energy crisis, petrol and diesel prices have continued to soar in Europe, leaving many consumers and investors alike scratching their heads. The latest numbers show that the average price of a litre of petrol has reached €2.35, a whopping 15% increase from last month. The German automaker Volkswagen has already announced plans to raise prices by up to €0.50 per litre, in an effort to offset the rising costs. As a result, many motorists are being forced to shell out even more for their daily fill-ups.

The high prices have significant implications for the broader economy, with many analysts warning of increased inflationary pressure. According to a recent report by the European Commission, the rise in fuel prices could add an additional €10 billion to the EU's annual inflation bill. This, in turn, could lead to higher costs for consumers and businesses, potentially slowing down economic growth. The impact on investors is also being felt, with many energy stocks experiencing significant volatility in recent weeks.

Industry experts point to the limited refining capacity in Europe as a major contributor to the current crisis. Since last quarter, several major refineries have been forced to shut down due to maintenance issues or supply chain disruptions, resulting in a significant shortage of fuel. The situation is further complicated by disrupted trade flows, with many countries struggling to import sufficient quantities of crude oil. As a result, prices have continued to rise, with no clear end in sight.

Looking ahead, the situation is expected to remain volatile in the coming months. Analysts are warning of the potential for further price increases, particularly if the refining capacity issue is not resolved quickly. However, some experts are also pointing to opportunities for innovation and investment in the energy sector. With the EU's plans to phase out fossil fuels by 2050, there is a growing need for alternative energy sources, such as electric vehicles and renewable energy. As the energy landscape continues to evolve, one thing is certain: the current crisis will have far-reaching consequences for the industry and the economy.