Fuel prices across Europe have surged dramatically in the past year, with diesel increasing by 38%, kerosene by over 100%, and gas by 150%, according to recent reports. These sharp increases are placing growing pressure on European governments, especially as natural gas reserves remain below average levels for this time of year. According to Gas Infrastructure Europe, European gas reserves are currently filled to 69%, compared to an average of 85% over the past five years. This situation is particularly concerning in Germany, where the far-right "Alternative for Germany" (AfD) party recently won regional elections in Mecklemburg-West Pomerania. The AfD's platform includes calls for peace with Russia and the reinstatement of low-cost Russian gas contracts, which could further complicate Germany's energy and foreign policy decisions. The rise in fuel prices is partly due to delays in refilling gas reserves, which are being exacerbated by high energy costs. Germany and the Netherlands, which hold 35% of the EU’s storage capacity, are struggling to replenish their reserves quickly. This delay is linked to ongoing conflicts, including the U.S.- and Israel-led operations against Iran, which have disrupted energy markets. Analysts initially expected the conflict to end quickly, allowing for a return to more affordable energy prices. However, the prolonged uncertainty has made the situation more volatile. Jonathan Schroer, a strategist at UniCredit, warned that each month of delay increases pressure on prices as the winter heating season approaches. While the current energy crisis is less severe than the one triggered by Russia’s invasion of Ukraine in 2022, it still poses significant economic risks. Countries have diversified their energy sources, and a weaker labor market has helped keep inflation in check. However, the European Central Bank (ECB) remains cautious, having raised interest rates last week and signaling that further increases may be necessary if energy prices remain high. World oil prices have exceeded $100 per barrel, pushing fuel prices up by 24% across the EU compared to last year. Gas prices, measured at 81 euros per megawatt-hour (MWh), are 150% higher than they were a year ago, surpassing the ECB’s "adverse" forecasts. The situation has raised concerns among economists and investors. Morgan Stanley predicts gas prices could reach 100 euros per MWh depending on winter conditions, calling reliance on weather a "risky bet." Jack Sharples of the Oxford Institute of Energy Studies warned that even a mild winter could heavily deplete reserves, with potential consequences for liquefied natural gas markets in 2027. A study by the Bank of Italy highlighted that gas price shocks have more lasting effects on inflation than oil shocks, prompting the ECB to focus more on gas and electricity prices. Financial experts believe the ECB may raise interest rates three or four more times, potentially slowing economic growth and investment. Meanwhile, sectors like airlines, chemicals, and construction are expected to suffer, while energy companies and banks may see some benefit, despite the challenges posed by higher borrowing costs.