Europe's fuel crisis deepens as prices top $12 a gallon and governments intervene

September 25, 2026 at 06:41 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

European governments are rolling out subsidies, tax breaks, and policy changes as gasoline and diesel prices hit records, with pump prices surpassing the equivalent of $12 a gallon in some countries. EU citizens are spending an extra 203 million euros ($231 million) a day on diesel alone, according to Transport & Environment. The measures come as the war in Ukraine and the Iran conflict disrupt global energy supplies.

Key Facts

Pump prices in some European countries have surpassed the equivalent of $12 a gallon.
EU citizens are spending an extra 203 million euros ($231 million) a day on diesel fuel, according to Transport & Environment.
Italy's industry and energy security ministers will meet with refining executives on October 8 to discuss boosting domestic fuel output.
The average gasoline price in Italy hit 2.14 euros per liter this week, equivalent to nearly $10 per gallon.
The Italian government has spent about 3 billion euros ($3.4 billion) this year on fuel tax and excise duty cuts.

Government Interventions

Seven of the 10 nations working most actively to contain the economic damage from high energy prices are in the European Union, according to an OECD report published Wednesday. Lithuania cut train ticket prices in half, while Greece is taxing gambling more to fund public relief efforts. Italy delayed the scheduled demolition of coal-fired power plants and slashed paperwork for oil and natural gas projects. The Netherlands increased funding for a program providing free energy-saving services in homes, and Poland proposed heavily taxing record profits of certain fuel producers and sellers.

Italy's Refining Push

Italy's Industry Minister Adolfo Urso and Environment and Energy Security Minister Gilberto Pichetto Fratin invited refining executives to an October 8 meeting to discuss raising diesel and gasoline output. Representatives from Unem, Sonatrach, Socar-IP, Iplom, KPI, Alma Petroli, Ludoil/Isab, Eni, Saras, and Innovhub are invited to attend. Gasoline and diesel prices in Italy have soared in recent weeks, with diesel prices even higher due to the jump in international crude oil prices and the global diesel crunch. The Italian government under Prime Minister Giorgia Meloni has spent about 3 billion euros ($3.4 billion) this year on fuel tax and excise duty cuts.

EU Energy Dependence

The EU imports nearly all of the oil it uses and 85% of its natural gas, with imports supplying 57% of the bloc's energy needs. EU leaders in Brussels gave member nations temporary discretion to provide state aid to households and energy-intensive industries like agriculture, transportation, and fishing. European Commission President Ursula von der Leyen said in her annual State of the European Union address that the bloc needs to double down on affordable, homegrown clean energy to gain independence and drive down prices.