Rising Diesel Prices Threaten Global Inflation

The International Energy Agency's Executive Director Fatih Birol has warned that rising diesel prices driven by geopolitical conflict will put upward pressure on global inflation. Speaking at the 'Beyond Climate: Towards Antalya' event, Birol noted that oil prices are now around $100 and that what matters more than crude oil prices is the price of refined petroleum products, particularly diesel.

Diesel prices in the transportation and agriculture sectors have nearly doubled from pre-war levels, mainly driven by high crude oil prices and damage to some refineries in the Middle East. Lower diesel exports from the region and the destruction of some refineries in Russia during the Russia-Ukraine war also contributed to increasing prices.

Birol emphasized that an even more significant sign of the scale of the current energy crisis is the shift in energy policies by countries, companies, and consumers. Countries are looking for new energy partners and more reliable suppliers while turning to new technologies.