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EU carbon market expansion to raise diesel prices

Motorists set to pay an extra 50 cents a litre from 2031, estimates show

EU motorists are set to pay at least an extra 50 cents a litre on diesel from 2031 to cover carbon costs, according to new analysis which raises fears of fresh protests against climate laws.

Fuel suppliers will be required to buy allowances from 2027 to cover their carbon dioxide emissions and are expected to pass that cost to consumers.

Veyt, a carbon market analytics firm, expects the scheme will add 14 cents to a litre of diesel in 2027, with the premium reaching 54 cents per litre in 2031 as more measures are phased in.

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