Diesel prices hit new heights in France

In October 2026, the average price of diesel in France reached approximately 2.35 euros per liter, nearing the record set in September. This price is about twenty cents higher than gasoline, reversing the historical taxation hierarchy that favored diesel.

Rising taxes and refining costs drive prices

Despite a decline in the price of a barrel of crude oil, diesel prices have risen significantly, with the cost of a liter containing more than one euro in taxes, compared to over half when the price was 1.60 euros. The key factor behind this paradox is the "refining margin," the difference between the price of diesel and the crude oil from which it is derived, which has exceeded 100 dollars in Europe.

Supply chain disruptions worsen the crisis

Diesel shortages have been exacerbated by several factors, including Ukrainian attacks on Russia, which forced the country to cut its diesel exports. Additionally, the blocking of the Strait of Hormuz and damage to refineries in the Gulf have reduced a major source of diesel for Europe.

France's dependence on imported diesel

France's reliance on diesel is partly due to historical taxation policies that favored it, resulting in diesel accounting for two-thirds of road fuels sold in the country. The country has had to import more than half of its diesel consumption, with over a quarter of imports previously coming from Russia before the European embargo.

Europe and the US face similar challenges

The situation is not unique to France, with diesel prices across the European Union rising from about 1.55 euros per liter at the beginning of January to 2.15 euros at the beginning of October. In the United States, the price of a gallon of diesel has reached 6.50 dollars, an increase of more than 75% in a year.

Government steps to ease the burden

In response to rising prices, the French government has announced the release of 10 million barrels of diesel from strategic reserves, which should lower the price by 12 to 18 cents for three months. Additionally, social leasing programs have been introduced to help modest households transition to electric vehicles, which are significantly cheaper to operate than diesel vehicles.

Long-term shift toward electric vehicles

The long-term solution to the diesel crisis involves a shift away from fossil fuels, with electric vehicles becoming an increasingly viable alternative. However, the transition to electric trucks and heavy transport remains a challenge, with Europe lagging behind countries like China in this area.

Carbon pricing to accelerate the transition

The European carbon market, set to begin in 2028, will impose a cost on carbon emissions, further incentivizing the move away from diesel. This policy aims to encourage industries to reduce their reliance on fossil fuels and invest in cleaner technologies.