Diesel prices soar in France, reaching highest level since mid-April

French drivers face rising fuel costs as the average price of a liter of diesel hits 2.1685 euros, the highest since mid-April. This marks the third consecutive weekly increase, with prices climbing ten cents in the past week alone and a substantial thirty cents over the last month. The current price level is a significant concern for those planning holiday travel.

The surge in fuel prices is largely attributed to renewed tensions in the Middle East, particularly concerning the Strait of Hormuz and the Red Sea. This geopolitical instability has impacted global oil markets, with Brent crude prices fluctuating significantly. Last week, Brent crude rose from $86 to $98 per barrel before settling around $89 this Monday. While this recent dip offers a slight reprieve, experts caution that it will take time to reflect at the pump, provided no further escalations occur.

The situation is mirrored in gasoline prices, though the increases are less pronounced. SP95 is averaging 2.0571 euros per liter, SP95-E10 at 2.0205 euros, and SP98 at 2.0831 euros. Over the past month, these fuels have seen increases of ten to fifteen cents, bringing them close to their mid-May record highs. Consequently, all fuel types in France have now surpassed the symbolic two-euro per liter threshold.

European Central Bank President Christine Lagarde has described the conflict's extension as "alarming," warning of a potential intensification of the energy shock with stronger-than-expected effects on prices and wages. The ongoing uncertainty in the Middle East continues to be the primary driver of these fuel price hikes, impacting household budgets across France.