Savings on fuel under government subsidies are fluctuating as prices shift across fuels
Prices for gasoline have seen a downward drift, with levels dipping below those seen before the latest surge tied to the war in Ukraine. After applying a government 20-cent discount, gasoline appears cheaper than in pre-war weeks, suggesting a temporary relief for drivers. Diesel, however, has not followed the same path. The war impact has unsettled diesel pricing more than gasoline, and the gap between the two fuels continues to reflect deeper market dynamics. A drop in imports from Russia is among the factors driving this divergence, underscoring how geopolitical events ripple into everyday fueling costs.
Over roughly two months, fuel prices have softened, recording a notable 16 percent decline. The European Union Petroleum Bulletin, which aggregates data from thousands of service stations, shows gasoline averaging roughly 1,797 euros per liter across major outlets from early to mid-August with a 3.34 percent dip, while diesel hovered around 1,806 euros after a minor decrease. When the 20-cent government discount is applied, gasoline sits at a level lower than before the latest global tensions, illustrating how subsidies can reshape price perception at the pump.
Comparisons show that the February price for gasoline was around 1,589 euros per liter, before the crisis intensified. With the discount, the value aligns closer to 1.58 euros per liter, making refueling more economical for many motorists. Diesel, in contrast, started near 1,479 euros per liter prior to the conflict and now averages about 1,811 euros. This creates a clear distinction in how the two fuels are affected by supply-side shifts and subsidy policies.
The historical trend has often seen diesel priced above gasoline since the Ukraine situation began. Although several factors explain this shift, one consistent pattern is that Russia did not abruptly cut supply but reduced overall volumes. Europe’s refining landscape has historically favored gasoline, delivering a broader capacity cushion for gasoline relative to diesel, which can amplify price differentials when supply or demand fluctuates. The combined effect is a nuanced picture where price direction depends on fuel type, geopolitical developments, and regional refining capabilities.
Savings are disappearing: fuels are already more expensive than before public subsidies
Looking at European-wide data, both fuels have eased but remain near peaks not seen since earlier in the year, and they still exceed last year’s levels by substantial margins. Gasoline remains roughly 26 percent higher than a year ago, while diesel shows around a 42.6 percent increase. When the government’s 20-cent discount is factored in, gasoline ends up about 12.7 percent higher than last August, and diesel approximately 26.8 percent higher, illustrating how subsidies can compress price gaps but not erase underlying inflation pressures.
The August holiday period, traditionally a peak travel time, coincided with some of the highest fueling costs on record for the season. This bridge period marks a point when travelers typically drive more, testing the resilience of drivers’ budgets. Historical comparisons reveal that the peak on this holiday has often exceeded current levels, with the 2012 peak showing gasoline around 1.47 euros per liter and diesel near 1.395 euros per liter, both notably lower than today. Yet, recent holiday data indicate that gasoline and diesel costs have retreated from the summer highs, offering a modest respite for commuters and longer trips alike.