Global Diesel Prices Near £2-a-Litre Amid Supply Squeeze
What happened
The average price for diesel in the UK has reached approximately 198.4p a litre, marking an increase of 15.3p over the past month, as the market approaches the £2-a-litre threshold. This price rise is driven by a severe global supply squeeze caused by Russian refinery disruptions, shipping problems, and reduced Middle Eastern exports. The UK market relies heavily on imports, which are sourced from the United States, the Netherlands, and Belgium.
Why it matters
The global supply chain issues are exposing the UK's reliance on imported diesel. The international diesel market is currently facing significant supply constraints due to factors including Russian exports and Middle Eastern shipments. The price increases affect costs for motorists, hauliers, farmers, and businesses.
The situation coincides with the closure of the Strait of Hormuz, which impacts regional oil flows and potential threats of a US diesel export ban affecting European energy supply.
Who's involved
- BelgiumGeopolitical state whose imports are relied upon by the UK market
- NetherlandsGeopolitical state whose imports are relied upon by the UK market
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The entities involved
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Belgium
country in western Europe
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Washington
township in Bergen County, New Jersey, United States
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Netherlands
one of the four autonomous countries of the Kingdom of the Netherlands; with territories in the Caribbean
Related events
- Belgium is providing gas supply to Britain via pipelines, a deal documented by Ofgem.
- Geopolitical disruptions are driving energy surges and raising input costs due to threats to shipping supply chains, affecting OECD members.
- Belgium is providing comprehensive support to Ukraine, including financial aid, military assistance (F-16 program), and strengthening sanctions against Russia.