Diesel Prices Surge in Sweden Amid Middle East Tensions; Ryanair Warns of Flight Cuts and Price Hikes

Sweden is witnessing a sharp increase in fuel prices, especially diesel, driven by escalating geopolitical tensions in the Middle East. On Wednesday, diesel prices rose by 1.50 SEK to exceed 21 SEK per liter, following an earlier increase of 0.50 SEK on Monday, pushing the price to around 21.30 SEK. Gasoline prices also climbed, albeit more moderately, by 0.30 SEK to just under 17 SEK per liter. These increases reflect a surge in global oil prices fueled by renewed conflict between the USA and Iran, with Brent crude prices hitting nearly $97 per barrel—the highest since July.

The spike in oil prices also impacted fossil gas prices in Europe, which rose over 2% to €73.80 per megawatt-hour, a record high since January 2023, potentially leading to higher electricity costs for Swedish households.

Amid these rising energy costs, Ryanair’s CEO Michael O’Leary has warned that persistent high oil prices could force ticket price increases and compelled the airline to reduce winter flight departures. The company has lowered its passenger forecast for 2026 from 216 million to 214 million to mitigate expected losses, now projected at 70-100 million euros. Ryanair also cautions that if oil prices remain elevated into summer 2027, significant fare hikes for European flights are likely.