where it costs Dh4.30<\/a>, or $1.17, up 13 per cent from August. Venezuela, Iran and Libya have the lowest cost at $0.004, $0.006 and $0.024, respectively.<\/p>\nAt the other end of the spectrum, Hong Kong has the highest diesel price worldwide at $4.695 a litre \u2013 way ahead of second-placed Malawi, where it is $3.383. Sixteen out of the top 20 locations with the highest diesel prices are in Europe, including the UK, France, Germany and Italy.<\/p>\n
The US, where the pain of higher diesel costs has already taken root \u2013 analysts warn of more if they remain elevated \u2013 is still in the middle of the pack with a per-litre equivalent of $1.66.<\/p>\n
In China, where diesel costs $1.187 a litre, inventories of the fuel at state-owned suppliers fell to a 15-month low, prompting analysts to predict that Beijing may curb monthly exports to protect domestic supply \u2013 which would eliminate another key source of the commodity, especially for Asia.<\/p>\n
But diesel has become “the bigger problem”, said Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank. “The economic implications extend well beyond energy markets. Diesel is a critical input for road freight, agriculture, construction, mining and manufacturing, meaning sustained high prices eventually feed into transportation costs and consumer prices,” he added.<\/p>\n
Road ahead<\/p>\n
The administration of US President Donald Trump has repeatedly said that high energy prices are a short-term pain, but the uncertainty over the Iran war’s endgame casts a huge cloud over those promises.<\/p>\n
The US Energy Information Administration this month raised its 2027 retail diesel price forecast by 8.2 per cent, referring to tight global distillate supplies and a domestic stash that continues to decline.<\/p>\n
The Washington-based agency said in its short-term outlook that diesel would hit an average of $4.40 per gallon next year, which is a 33-cent jump from its previous prediction. For 2026, it updated its forecast by 4.4 per cent to $5.07 \u2013 before this week’s spike.<\/p>\n
“We forecast US distillate fuel oil inventories will drop below 100 million barrels in September and will remain below the five-year [2021\u20132025] low through much of 2027,” the EIA said. “Tightness in the global distillate market has raised domestic prices and incentivised US exporters to increase distillate exports. We assume global production of distillate fuel will remain below last year\u2019s levels in the coming months, contributing to low US diesel inventories and high diesel prices.”<\/p>\n
The International Energy Agency, meanwhile, said a partial offset for the diesel squeeze comes from other regions \u2013 amid disruptions in the Middle East and Russia \u2013 and inventories have so far played a “crucial role” in balancing the market.<\/p>\n
“Gasoil and diesel exports from both the Middle East and Russia have been squeezed by the wars,” said Ipek Ozkardeskaya, a senior analyst at Swissquote. “With no end in sight, supply constraints will become a growing headache, especially as global oil inventories and strategic reserves have been falling. In other words, the clock is ticking louder.”<\/p>\n","protected":false},"excerpt":{"rendered":"The price of diesel in the US surged to a record high this week of $6.31 per gallon.…\n","protected":false},"author":2,"featured_media":630151,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[72,7889,113,580,61,60,123,1284,329],"class_list":["post-630150","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-business-team","tag-economy","tag-energy","tag-ie","tag-ireland","tag-markets","tag-standard","tag-story"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/630150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=630150"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/630150\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/630151"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=630150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=630150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=630150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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