Diesel prices at Swiss service stations remain close to 2.20-2.30 francs per litre despite a more than 7% drop in Brent crude to $87 per barrel over recent days. The price gap is striking compared with early June, when diesel sold for 1.90-2.00 francs per litre at a Brent price of $97 per barrel.
The sustained high pump prices are not driven by excessive margins at Swiss retailers, which have passed through lower crude costs in other fuel segments. Instead, the market is constrained by structural shortages in global refining capacity outside the Middle East, Russia’s July 2026 export ban on diesel, gasoline and other fuels, and critically low distillate inventories.
U.S. distillate inventories—including diesel—stood at 103.4 million barrels in the week to August 21, the lowest level for this time of year in data going back to the early 1980s, according to the Energy Information Administration. While U.S. refiners still have spare capacity, Europe has lost an estimated 3.5-3.8 million barrels per day of crude processing capacity over the past two decades, according to RBN Energy. A significant share of Europe’s diesel supply had previously been met by imports from Russia, which halted shipments after Ukraine intensified drone strikes on Russian energy infrastructure.
The supply disruption has forced Europe to turn to non-traditional sources, with Mexico’s state-owned oil company Pemex shipping nearly 300,000 barrels of low-sulfur diesel to Spain in August, according to Kpler and Bloomberg data. Mexico, typically a net importer, is redirecting cargoes to Europe amid tight regional markets.
Production costs for diesel in Europe have doubled this year, while gasoline costs have risen about 70%, reflecting the combined impact of higher processing expenses and persistent supply tightness. Analysts at Bloomberg warn that diesel prices could climb further as seasonal demand peaks in October, when northern hemisphere heating demand and agricultural planting coincide. Additional pressure stems from the near-complete halt in refined fuel exports through the Strait of Hormuz amid tensions with Iran.
Switzerland faces additional logistical risks as low Rhine water levels—used to transport roughly one-third of the country’s mineral oil products—threaten to disrupt fuel flows. Prolonged drought could force imports via more expensive truck and rail transport, pushing retail prices higher.
For now, Swiss motorists can find cheaper diesel across the border in Germany, where prices are 10-15% lower due to government subsidies. Diesel engines also offer higher thermal efficiency and lower CO₂ emissions per kilometre than gasoline engines.
