Europes diesel prices hit record highs in Cyprus as coal regains profitability amid energy crisis

Europe’s energy crisis deepened on Friday as diesel prices in Cyprus hit a record €1.997 per litre, with over 100 stations already charging above €2, according to the Consumer Protection Service’s Fuel Price Observatory. Marios Drousiotis, president of the Cyprus Consumers Association, said the average could exceed €2 by Saturday as increases filter through gradually, while heating oil traded at €1.608 per litre, above its 2022 peak .

The surge follows global oil market volatility, with Brent crude fluctuating around $105 per barrel amid geopolitical tensions, including Houthi attacks on Saudi Arabia and U.S. moves to restrict diesel exports, which analysts warn will exacerbate shortages in Europe and Latin America .

In Spain, drivers face prices near 2008 levels despite fiscal discounts, with diesel at €1.92 and gasoline at €1.93 per litre, as refining margins double the crude price increases, according to AICE data . Meanwhile, Latvia’s Saeima approved excise tax cuts on diesel and gasoline, reducing rates by 16.7% and 11.7% respectively, effective October 1, with retail prices expected to drop by €0.08 per litre if fully passed on .

The crisis is also reshaping Europe’s energy mix: soaring natural gas prices—above €80/MWh—have made coal plants 25% more profitable than gas-fired ones, reversing years of decline, though capacity constraints limit a full coal revival, according to ICIS and Reuters .