Key facts
- Attacks on oil tankers in the Strait of Hormuz have escalated, impacting global oil prices.
- Crude oil prices have risen above $100 per barrel.
- Europe experienced a temporary decrease in fuel prices following a US-Iran ceasefire agreement.
- Spain, Hungary, and Poland have employed strategies to mitigate fuel price hikes.
- Spain's robust oil infrastructure contributes to its fuel price stability.
The Strait of Hormuz, a vital global oil shipping lane, is experiencing heightened tensions following attacks on oil tankers, attributed to Iran and its Houthi allies. This has caused crude oil prices to surge past $100 a barrel, reversing a brief period of relief experienced after a US-Iran ceasefire agreement.
In June, Europe saw a notable decrease in fuel prices, with diesel falling by 6.4% and petrol by 4.2% compared to May. However, the renewed instability in the Strait of Hormuz is pushing prices upward again. While most European countries registered price drops, Italy and Cyprus were exceptions, with slight increases in petrol prices.
Several European nations are implementing measures to mitigate the impact of rising fuel costs. Hungary has imposed price caps, while Spain and Poland have reduced VAT on petrol and diesel. Spain, in particular, benefits from a resilient oil infrastructure, including numerous port terminals, pipelines, and storage facilities connected to its refineries, which helps stabilize its fuel supply costs.
Year-on-year, Eastern European countries like Bulgaria, Lithuania, and Romania have experienced the most significant fuel price increases, exceeding 23%. Non-EU countries Turkey and Georgia reported even higher annual hikes. The International Energy Agency has highlighted Spain's unique and extensive oil infrastructure as a key factor in its ability to manage fuel price fluctuations.