Now warn fuel wholesalers: Dramatic shortage of diesel is coming
Rising fuel prices are already driving many drivers to despair. But it will only get worse. Experts are predicting an unprecedented shortage of diesel. The reason: half of Europe’s diesel comes from Russia.
“Europe imports about half its diesel from Russia and about half its diesel from the Middle East,” said Russell Hardy, chief executive of energy trading company Vitol. “There is a systematic shortage of diesel.”
Torbjörn Törnqvist, head of commodities conglomerate Gunvor, described the current energy market as “paralyzed”. It is a global problem that hits Europe particularly hard.
War has exacerbated the situation
The problem is obvious. Every day (!) we get a million barrels of diesel from Russia. The dependency is still enormous – despite the already high burden. EU regulations and taxes on CO2 emissions have been increasing the price for quite some time. The war in Ukraine has now dramatically aggravated the situation.
Situation could get worse in April
For example, Energy Aspects, a London-based research institute, warned that diesel reserves in Europe could fall below the 390 million-barrel mark this month, something that had not happened since 2018. And the situation could worsen further in April if Western sanctions against Moscow increase, leading to fewer purchases of diesel, a fuel that is difficult to replace by other suppliers in the short term.