The price of diesel in the United States has reached $6.52 per gallon, marking a significant increase compared to last year and two years ago. This price rise not only affects drivers and businesses but could also severely impact the entire global economy.
Reasons for the Increase in Diesel Prices
The main reason for this price increase is the shortage of diesel and rising energy costs. Major diesel producers include the United States and China. While China retains most of its production for domestic use, the United States has become the largest exporter of diesel in the world. However, the price of diesel in the United States has now reached $6.52 per gallon, which is a noticeable increase from an average of $3.74 last year and $3.53 two years ago.
Impacts on the European and Global Economy
The increase in diesel prices could have serious consequences for the European economy. According to experts, 38 percent of vehicles in the European Union are diesel, and road transport, including freight, accounts for 77 percent of total diesel and gas consumption. This dependence on diesel transport means that drivers and businesses are heavily affected by fluctuations in oil and fuel prices. Estimates suggest that drivers in the European Union are paying an average of 30 euros more for a 50-liter tank of diesel.
Since the beginning of the war in Ukraine, the additional costs due to rising diesel prices have reached 40 billion euros for the EU economy. This situation could exacerbate the global cost of living crisis and inflation.
On the other hand, former U.S. President Donald Trump has advised the President of Ukraine to end attacks on Russian oil refineries, as this leads to a diesel shortage. Additionally, some Russian oil refineries have been damaged due to the conflicts, and the country's diesel production has decreased by nearly 30 percent.
Ultimately, as winter approaches, the demand for diesel as heating fuel will also increase. The closure of refineries in Europe and the United States since 2019 has made the diesel market vulnerable, which could lead to further price increases.
