EU countries face nearly €41bn in extra fossil fuel costs

The Netherlands, Italy, France and Spain are among the top ten countries worst hit by additional fossil-fuel import costs caused by disruption in the Middle East, according to a report from the Centre for Research on Energy and Clean Air (CREA).

Across the 170 countries examined, 134 paid more for diesel than markets had anticipated before the war, CREA’s report reveals. The Netherlands recorded an estimated €11.5 billion in additional costs between March and August 2026, followed by Italy at €12.7bn, France at €10.8bn and Spain at €8.8bn.

Together, the four EU economies absorbed almost €41bn in extra fossil-fuel costs without importing any new volumes of energy.

The figures highlight European economies’ exposure to global oil and gas prices, revealing a crisis that has added more than €282bn to fossil-fuel import bills worldwide, with oil alone accounting for €140bn of the increase.

Liquefied natural gas (LNG) prices rose by 60% in the Atlantic and 75% in the Pacific, while diesel and petrol prices jumped 59% since the United States and Israel launched a war against Iran on 28 February.

To offset the Middle East loss, the US and Norway were the largest suppliers of both petroleum oils and LNG to the EU in the first quarter of the year, according to EU data.

For Europe, the diesel shock is particularly important since the bloc relies heavily on the fuel for freight, farming and industry, meaning higher fuel costs can spread through supply chains and ultimately further raise the price of goods.

Green energy investment pays off

However, CREA’s authors suggest Europe’s clean-energy buildout is becoming an energy-security asset.

The report notes that clean power capacity installed in the bloc since 2020 saved importing countries €36bn in fossil-fuel purchases during the first five months of the crisis.

“The best way to protect against high oil prices is to get off the black stuff as quickly as possible,” said Luke Wickenden, energy analyst at CREA.

“Oil and gas prices have long proven to be an Achilles’ heel for both household finances and the global economy as a whole. Meanwhile, countries that invested in clean energy after past energy crises have saved billions of dollars.”

The savings were particularly valuable because every unit of gas, oil or coal displaced by clean electricity was a unit that did not have to be bought at wartime prices.

Renewables and electrification are no longer only about cutting emissions, the report argues, but a hedge against geopolitical energy shocks. Countries with a proportionally larger supply of clean power and lower fossil-fuel demand are less exposed when international fuel prices spike.

“Renewables saved Spain billions, but oil-dependent transport, aviation and industry still left every person carrying an additional gross fossil fuel import cost of €181,” Isaac Levi, CREA’s Europe-Russia policy & energy analysis team lead, told Euronews.

“Spain’s experience shows that clean electricity must now be matched by faster electrification across the wider economy.”

Green groups urge EU to ditch fossil fuels

Meanwhile, a letter signed by more than 100 European and international organisations calls on European Commission President Ursula von der Leyen to provide a shared strategic vision for the remainder of her mandate and deliver a fossil fuel exit plan during her State of the Union address slated for 16 September.

“We urge you to use your upcoming address to announce the launch of a comprehensive, science-based and independent report with one clear objective: to make this fossil fuel crisis Europe’s last,” reads the letter.

The signatories, led by the green NGO Climate Action Network Europe argue that Europe is paying twice for its fossil-fuel dependence: first through higher energy costs, and then through the escalating damage caused by climate change.

“None of this is accidental. Fossil fuel dependence has repeatedly undermined Europe’s prosperity and constrained its ability to act in the world. As long as Europe relies on fossil fuels, its citizens remain exposed to price shocks and geopolitical decisions made elsewhere,” the letter read.

The signatories want von der Leyen to commission an independent report, similar to the Draghi report, setting out how the EU can accelerate a complete fossil-fuel phase-out while protecting consumers, workers and industry.

The proposal makes renewables, efficiency, grids and clean flexibility the main drivers of the strategy, while calling for EU and national spending to be redirected away from investments that prolong fossil-fuel dependence.

It also adds a strong industrial policy dimension, demanding secure supply chains for the critical materials Europe’s clean-energy industries need.

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