Diesel prices reach historic high

An unexpected pause in US attacks on Iran is causing a drop in energy prices. However, energy prices remain at a high level. Diesel prices are even at a record level. At €200.05 per 100 liters for purchases of 4,000 liters or more (LTO member price), a new record high was set on Monday for diesel. Today, the price has fallen by 3.4% (€193.22), but diesel prices remain historically high. Demand for diesel is relatively inelastic because of its high use in the transport and agriculture sectors. Despite significant refining capacity in Europe, imports are essential to meet demand. In addition, only certain types of crude oil are suitable for diesel production. With Russia no longer a supplier, dependence on imports from the Middle East, in addition to the US, has increased further. US President Trump announced on Monday a five-day pause in attacks on Iranian energy plants and energy infrastructure. He did this just before the expiration of his ultimatum to Iran to open the Strait of Hormuz, otherwise he would destroy the Iranian energy supply. According to Trump, the US and Iran had good talks and are close to ending hostilities. Iran denied this, but it appears that there has still been communication indirectly via Turkey, Egypt and Pakistan between the US and Iran. The oil price rose on Friday to $112.19 per barrel, the highest level since June 2022. After the announcement of the attack pause, oil prices dropped sharply, but today (24 March) it is on the rise again. At $103.51 at the time of writing, a barrel of oil still costs 7.7% less than before the weekend, noting that prices are rising again. Gas price falls more sharplyThe gas price on the TTF futures market attack on the entire Iranian energy supply. Today the gas price fell further to €53.88 per megawatt hour at the time of writing (Tuesday afternoon 24 March). A decrease of 12.9% compared with last Thursday (19 March). Then the gas price reached its highest point in over three years. Electricity The average daily electricity price on EPEX Spot fluctuated last week between €77.81 and €134.56 per megawatt hour. Slightly less than half (48%) of electricity production comes from fossil sources (new CBS figures for 2025). As a result, the war in the Middle East is also affecting the electricity price. The short-term direction of energy prices depends on how long the hostilities in the Middle East continue and what damage is done to energy production and infrastructure. For now, the situation in the Strait of Hormuz remains unchanged, with limited shipping, as vessels take significant risks or reportedly pay Iranian authorities for safe passage if they are not affiliated with the US or Israel.