Diesel Prices Soar as Global Supply Chain Disruptions Bite
Diesel prices are surging globally, putting further pressure on Europe's economy. The US is blaming Ukraine for diesel shortages, but experts say there's more to the story.
Russia, one of the world's biggest diesel suppliers, has seen its oil refineries attacked numerous times since 2022. This has led to a nearly 30% decline in diesel production and Moscow restricting exports to protect domestic supplies.
The US has stepped up diesel production to make up for the shortfall, but even this hasn't been enough. President Donald Trump recently called on Ukraine's president to stop targeting oil refineries in Russia, citing a shortage of diesel.
Economists warn that higher energy costs will be passed on to consumers and exacerbate the growing cost-of-living crisis and inflation.