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
- Sanctions are targeting oil trade involving Iranian tankers, with Belgium participating in the EU sanctions forum.
- The Netherlands is serving as a leading destination and transit point for U.S. ethanol exports.
- India and Belgium aim for 2x trade in 5 years.
- The Netherlands is concentrating third-country imports into the EU market, utilizing its port infrastructure for goods like citrus.
- Trump demanded US control over Greenland, while US actions are now reported to be affecting the vital interests of Belgium.