Fuel prices have soared since Russia's invasion of Ukraine
Russia says it's no longer supplying gas to Poland and Bulgaria after the countries refused to pay for their supplies in roubles.
Despite the invasion of Ukraine, Russia has continued to supply a large amount of gas to many European countries.
However, after Western powers placed financial sanctions on Russia, President Putin announced that "unfriendly" countries would have to pay for gas in Russian currency.
The Russian-state-owned energy company Gazprom has said it has cut off supplies to Poland and Bulgaria and will not restart these until payments are made in roubles.“It is clear that the higher costs, unfortunately, will filter to the consumer who will find it a double drain: the doubling of bills will increase the cost of numerous foodstuffs on the shelves,”
Russia is the world's largest oil exporter, sending more than seven million barrels of crude oil to countries around the world, including to Germany and other EU.
Its most important oil export partners are China, the Netherlands, Germany, South Korea, and Poland, while the UK and US reliance on Russian oil was less pronounced even before the invasion.
Prices for gasoline and diesel in the Netherlands, Denmark and Germany are higher than in any other European country, Germany's Federal Statistical Office (Destatis) has said.
In early March, prices for standard E10 fuel and diesel at petrol stations in Germany climbed above the 2-euro ($2.18) per litre mark. The country's Federal Cartel Office (BKartA) on Monday said it would closely monitor prices in response to this development.
Fuel prices were even higher in the Netherlands and Denmark, at 2.11 euros and 2.09 euros respectively. However, Germany had the highest prices for diesel of any European country as of April 4, according to Destatis.
The German government adopted several measures to cushion the effects of rising energy prices, including an increase in the basic tax-free allowance, and higher mileage allowances for long-distance commuters, Xinhua news agency reported.
In addition, the energy tax on diesel and gasoline in Germany is to be temporarily reduced by 14 euro cents and 30 euro cents per litre, respectively. To make local public transport more affordable, a special 90-day ticket will be made available for only nine euros per month.
Fuel costs are the lowest in Poland where the price for E5 is only 1.42 euros.
As companies and consumers alike labour under the strain with food and energy prices soaring to multi-decade highs, governments are pondering what means they have at their disposal to react and lessen the pain.
The policy arsenal includes trimming energy taxes and prices, along with targeted state support with some economies across the continent suffering a heavier burden than others.
The European Commission said at the start of this month it could extend a suspension on rules on budgetary rigour through to next year as several EU states urged a common response to the war’s financial fallout, on the heels of that wrought by the pandemic.Prime Minister Pedro Sánchez has made a series of trips to EU partners seeking an accord on a joint strategy to deal with the problem at a March 24-25 summit.
At the same time, Madrid has hinted that it will take unilateral measures if a common agreement does not materialise.
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