Car petrol sales went down by 3.5% in April, the steepest drop since 2023, with inflation still on the rise, according to EU data

European drivers have slashed fuel consumption as the Iran war and oil price hikes are forcing belt-tightening at the pump, according to Eurostat data and the Financial Times.

Fuel sales in the Eurozone fell 3.5% by volume year-on-year in April, with the drop being the steepest since October 2023, a Eurostat report released over the weekend shows. According to the Financial Times, six European economies recorded double-digit declines in fuel sales, among them Germany, Norway, and Austria.

As of early June, the EU average petrol price stands at €1.8 per liter ($2.1), as compared to around €1.5 per liter before the start of the Iran war in late February. Twelve EU countries saw diesel prices rise by more than a third in April against a year earlier, with an average increase of 33.7% across the bloc.

The Iran war led to the de facto closure of the Strait of Hormuz and damage to key oil facilities in the Gulf, with the benchmark Brent oil price floating around $94 per barrel, which is, though, significantly lower than the peak of more than $120.

The knock-on effects of the war continue to loom over the EU economy despite the fragile ceasefire between the US and Iran. In late March, EU officials revealed that the bloc's imported fossil fuel bill jumped by €14 billion. In addition, overall Eurozone inflation hit 3.2% in May, up from 3% in April.

The UK has also suffered from the war impact, with petrol peaking at Pound 1.59 ($1.98) per - also seen a more than 20% rise in "fill up and flee" crimes at petrol stations, according to security firm Forecourt Eye.

As for the UK's inflation, the annual Consumer Prices Index (CPI) rose to 3.3% in March but briefly cooled to 2.8% in April, though analysts predict that the relief could be short-lived.

American drivers fare no better, with the national average gas prices hitting $4.16 a gallon as of June 8. According to Moody's Analytics, the average US household has spent nearly $450 more on energy costs since the conflict began, totaling close to $60 billion cumulatively.

(RT.com)