Christine Lagarde says of Europe’s fuel squeeze and refining margins: "we all know what it's about"

After the European Central Bank raised interest rates on Sept. 10, President Christine Lagarde addressed Europe’s fuel squeeze, saying refining margins—once little understood by many—are now widely recognized, and identifying diesel as an additional pressure point. The article attributes the refined-fuel shortage to two shocks: reduced diesel and jet fuel exports from Gulf refineries because of conflict around Iran and the Strait of Hormuz, and Russia’s summer ban on diesel exports after Ukrainian drone attacks on refineries. That has pushed the price gap between crude and finished fuels to records. The bank put August energy inflation at 14.3%, compared with 10.3% the month before, partly due to refining margins. ECB staff calculated that diesel refining accounted for roughly 41 cents in each liter, nearly 20% of what drivers pay. European oil and gas shares have climbed sharply this year.