Diesel prices overtake jet fuel in Europe

Diesel cargo prices have risen above jet fuel prices in Europe for the first time in more than a year, Mediafax reports.

The shift comes as Europe replaces reduced jet fuel supplies from the Middle East with alternative sources while struggling to secure sufficient diesel for industry and agriculture, according to LSEG data cited by Reuters, CE Report quotes MOLDPRES.

Europe has managed to attract jet fuel shipments from the United States and other countries, including Nigeria, after prices rose following the outbreak of the war with Iran, which disrupted crude oil and fuel supplies. Global diesel supplies tightened further after Russia banned exports amid Ukrainian attacks on its refineries.

Europe increased its jet fuel imports to 750,000 barrels per day in June, the highest level since October 2025, and maintained a similar pace in July, compared with 612,000 barrels per day in January, according to Kpler.

By contrast, European diesel imports fell to 1.56 million barrels per day in July, down from 1.97 million barrels per day in January.

Against this backdrop, diesel prices overtook jet fuel prices this week, according to LSEG data.

Why are diesel prices rising again?

Diesel prices have resumed their upward trend in recent weeks amid stalled peace negotiations with Iran and disruptions to Russian exports. They are now only 14% below their April highs.

Jet fuel prices have also increased in recent weeks, but remain 25% below their March record levels.

Another sign of the relative weakening of jet fuel is its decline against gasoil futures prices, the European benchmark used to price the fuel.

The estimated price for a shipment of jet fuel arriving in Europe was $24 per tonne below the price of gasoil futures on August 10, according to LSEG.

This was the largest discount since July 2025. At the height of the war with Iran in March, jet fuel was priced more than $500 per barrel higher.

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