Ireland set to become Europe’s most expensive country to buy diesel

With just 12 days remaining until Budget Day, Ireland is poised to become the most expensive country in Europe for diesel and among the highest for petrol due to escalating fuel taxes.

The imminent increase in carbon tax will push Ireland to the top of the European fuel price rankings, according to Fuels for Ireland (FFI) and based on figures released by the European Commission last week.

According to the EU’s Weekly Oil Bulletin published by the European Commission (dated 9th September), Ireland’s current diesel price is €1,667.20 per 1,000 litres, which is above the Euro Area average of €1,554.61 per 1,000 litres.

For context, diesel prices in Denmark are €1,597.51, in Sweden €1,477.35, and currently the highest in Europe is in Finland at €1,683.00. After the planned carbon tax increase of 2 cents per litre next month, Ireland is expected to rise from 2nd to 1st place for diesel prices in Europe.

Petrol prices in Ireland are currently €1,749.00 per 1,000 litres. This figure is also higher than the Euro Area average of €1,692.33, though not the highest in Europe. For comparison, petrol prices are €1,893.00 in the Netherlands and €1,705.00 in Germany. Ireland will hold its place as the 6th most expensive country in Europe for petrol.

FFI is reiterating its call on the Government to establish an expert group to review fuel taxation policies, and all parties and candidates in the upcoming general election to support the policy.

Its chief executive Kevin McPartlan said: “The planned carbon tax increase will catapult Ireland to the top of the EU’s fuel price rankings, making us the most expensive country in Europe for diesel and one of the highest for petrol. For many years, we’ve urged the Government to take meaningful steps by establishing an expert group to review fuel taxation.

“The relentless rise in fuel prices is not just unsustainable for consumers but counterproductive. Our recent survey confirms that 80 per cent of motorists agree with the need for an urgent review.

“It’s clear that current taxation policies are not driving the shift to electric vehicles, as originally intended. Instead, they disproportionately burden those who can least afford it.

“The Government must understand that this is not about pro-environmental policy—it’s about fiscal pressure. Without adequate support for consumers and a balanced approach to taxation, we risk pushing more people into financial hardship.”