Analyst warns diesel could top $4 and rationing possible if US ban proceeds
Saul Kavonic says the US's proposed diesel export ban is "probably the most worrying development we've seen in global fuel markets since the [Middle East] war began".
An energy analyst has warned that a proposed US export ban on diesel could lead to rationing within weeks and prices soaring to over $4 per litre in Australia. US President Donald Trump has expressed support for the idea, which is being pushed by Republican politicians ahead of the midterm elections in November. The US exports about 1.3 million barrels of diesel daily, accounting for roughly a quarter of its refining output.
Diesel prices in the US have already reached record highs, with an average of more than $US6.50 a gallon. While Australia does not directly import diesel from the US, the country is the world's largest importer of diesel, accounting for 10% of global seaborne diesel imports. With major refineries offline due to conflicts in the Middle East and Ukraine, the US has been compensating for the shortfall.
This situation has put Australia in a vulnerable position, as the economy is heavily reliant on both agriculture and mining, industries that depend heavily on diesel. If the US proceeds with the export ban, particularly if it is severe, Australia could face diesel rationing as early as within weeks, with prices potentially rising by up to 50% to more than $4 per litre.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
