European drivers could pay about €220 more per year for fuel as oil prices surge due to tensions linked to the conflict involving Iran, analysts have warned.
Experts say if oil prices remain around $100 per barrel, motorists across the European Union may collectively spend about €55 billion more annually on fuel. The estimate is based on comparisons with fuel costs during 2022, when the oil market surged following the Russian invasion of Ukraine.
In the United Kingdom, analysts estimate that drivers covering around 8,000 miles a year could face an additional £140 in annual fuel expenses if oil prices stay at similar levels.
Rising oil prices are also widening the cost advantage of electric vehicles. Drivers using electric cars already spend significantly less on energy than those with petrol or diesel vehicles, and higher oil prices could increase those savings further.
Across the European Union, about 7.7 million electric vehicles are already helping reduce oil consumption. With oil prices near $100 per barrel, electric vehicle drivers could collectively save millions of euros each day compared with petrol or diesel users.
Energy analysts warn that Europe’s dependence on imported oil leaves households vulnerable to global market shocks and geopolitical tensions. They say long-term solutions include accelerating the transition to electric vehicles, renewable energy and other technologies that reduce reliance on fossil fuels.
Oil price spikes also tend to generate major profits for large energy companies. In 2022, when oil prices surged, major firms including BP and ExxonMobil reported massive earnings as global energy demand remained strong.