Here's why diesel prices are rising at a faster rate than crude oil
Global diesel shortages are driving prices to record levels as wars disrupt crude supplies, damage refineries and drain fuel inventories, with relief unlikely before 2027.
As the conflicts in the Middle East and Ukraine disrupt crude oil supplies and damage refineries, diesel prices have been soaring at an unexpectedly higher rate compared to crude oil and petrol. The United States, France, and South Africa have all experienced record diesel prices. In the US, the national average reached $6.52 per gallon (R106) on Monday, while in France, diesel hit €2.41 (R45) per litre.
South Africa is expected to see record diesel prices of R31.80 by October, up from R30.62 earlier. This surge in diesel prices is due to a shortage of refined petroleum products and constrained refinery capacity. Western countries have banned imports of Russian petroleum products, and Ukraine's attacks have damaged Russian refineries, leaving countries in need of alternative sources.
Gulf countries, major exporters of refined petroleum products, have also faced refinery damages, tightening global supplies. It is anticipated that even if oil shipments resume through the Strait of Hormuz, the diesel shortage will persist, as the market is highly sensitive to geopolitical disruptions and refinery capacity constraints.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
