Switzerland faces higher energy costs as winter gas risks mount

Europe is entering the winter heating season with gas storage levels running low, while the Strait of Hormuz remains disrupted by the US-Iran conflict. Switzerland has continued to receive petrol, diesel and heating oil, yet the conditions around Europe’s energy market have become more costly and less forgiving.

The immediate concern for Swiss households and businesses is a price shock. Switzerland buys most refined fuel from European Union countries, linking domestic prices to regional supply, freight and wholesale markets. Any competition for limited gas or fuel cargoes could raise costs even when Swiss filling stations remain supplied.

That exposure is sharpening as summer ends. Brent crude stood at about $90 per barrel, around 25% above its pre-war level. European diesel prices have climbed by more than 70% since the conflict began. The pressure is already visible in Switzerland, where diesel averaged CHF 2.27 per litre in late August and unleaded petrol reached CHF 2.02.

The figures point to a supply system that is functioning, but at a higher cost. Winter demand will test how much room European markets have to absorb another disruption.

Swiss fuel importers report secure deliveries, and the country has not released its emergency reserves during the conflict. Avenergy spokesperson Ueli Bamert told Swissinfo that supplies had remained guaranteed throughout the previous six months.

Switzerland’s import profile has helped limit its direct exposure to the Gulf. About 30% of Swiss oil imports arrive as crude, mainly from the United States, Nigeria and North Africa. Most refined petrol and diesel come from EU countries, where traders and transport networks remain connected to the wider European market.

The federal system also provides a buffer. Mandatory stockpiles held by private companies under government supervision can cover around four and a half months of petrol, diesel and heating oil consumption. Kerosene reserves cover about three months. The government did not draw on those stocks during the first six months of the war.

Those reserves protect against a sudden physical shortage. They do not shield consumers from wholesale price increases, higher shipping costs or a prolonged squeeze on European supplies. Swiss motorists can therefore expect market volatility to reach them through prices before it appears as empty pumps.

Swiss drivers are already paying more at the pump, and transport costs are feeding pressure through the wider economy. Diesel prices rose 21% between late February and late August, while unleaded petrol increased 17%. The change affects commuters, farmers, delivery firms and companies that depend on road freight.

The Geneva-based International Road Transport Union estimates that road freight costs in Switzerland are 15% higher than a year ago. The organisation expects costs to remain elevated until the end of 2026. Fuel is one factor, alongside the wider expense of moving goods through a market affected by disrupted energy routes.

Heating oil adds a direct household burden. The price rose from about CHF 92 to CHF 156 per 100 litres in April, then eased before climbing again to roughly CHF 140 in late August. Heating oil remains the primary heating source for about 35% of Swiss buildings, according to the Federal Statistical Office.

Low water levels on the Rhine have compounded the problem. Reduced navigation has disrupted petroleum deliveries from North Sea ports to Basel, raising transport costs for products moving into northern Switzerland.