Diesel prices are surging. Ukraine is only part of the story
Trucks, farms and industry are powered with diesel. Now prices are soaring due to refinery disruptions, supply shortages and geopolitical tensions. A potential US export ban could make Europe's diesel crunch even worse.
Diesel prices have been rising worldwide, affecting many aspects of daily life beyond just vehicle fuel costs. Diesel is crucial for powering various types of machinery and transportation. The United States, as the largest diesel exporter, has seen a significant increase in diesel prices, from an average of $3.74 per gallon two years ago to $6.52 today.
Russia, another major producer, has been affected by attacks on its oil refineries since 2022, reducing its diesel production by nearly 30%. The United States is considering a diesel export ban ahead of the midterm elections to lower domestic prices, but energy lobby groups oppose this move. Europe, which heavily relies on diesel, is particularly vulnerable to these price hikes.
The EU economy has already seen costs of €40 billion from road diesel since the beginning of the war in Ukraine. Restrictions on Russian diesel exports and refinery disruptions are the main drivers of the current diesel price surge, with the Strait of Hormuz posing a long-term risk. Winter is also expected to exacerbate the situation, as refineries may struggle to meet both heating oil and diesel demand.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
