Middle East Conflicts Drive Diesel Price Surge to Six-Month High
Global diesel prices are on the rise due to ongoing conflicts in the Middle East and Ukraine. The blockade of the Strait of Hormuz has disrupted shipping, causing a surge in fuel costs. According to French petroleum industry union UFIP, the average price per liter of diesel was €2.23 during the week of August 17, up from €1.86 in early July.
The conflict in Ukraine has also contributed to the increase in prices. Brent crude, a global benchmark, is currently trading around $93 per barrel, after briefly falling below $70 in early July. Refined products are rising even faster, with a metric ton of diesel now costing over $1,250 on the wholesale market in Rotterdam.
The price jump has been significant, with prices reaching 45% higher than during the ceasefire and 70% higher since the war began six months ago. The situation is concerning for drivers, who are facing continued high fuel costs as summer comes to a close.