Bangkok: Diesel prices are soaring worldwide due to the blockade of the Strait of Hormuz, with California having the highest price for standard gasoline. The situation with oil prices, especially diesel, is that retail prices have soared worldwide.
According to Thai News Agency, earlier this month, diesel prices in Europe surpassed $200 per barrel for the first time since 2022. The Netherlands had the highest diesel prices in Europe, at $2.80 per liter, which is almost 100 baht. Germany and France saw prices jump by more than 30% since the conflict began, with retail prices exceeding £2.20 per liter. This led several European countries, including Ireland, Spain, Romania, Italy, and Austria, to announce temporary reductions in diesel excise taxes to alleviate the hardship for their citizens. Meanwhile, Slovenia became the first country in the European Union to begin rationing its oil purchases.
In ASEAN, diesel prices in Cambodia have more than doubled since the war erupted in the Middle East, currently standing at $2.03 per liter, or approximately 66.27 baht. In Myanmar, the Ministry of Finance has announced a temporary exemption from import duties on diesel fuel in an attempt to stabilize and lower the prices of domestic consumer goods. Meanwhile, in the United States, diesel futures prices have surged to $5.45 per gallon, an increase of $1.70 since the start of the war.
While the price of standard-grade gasoline has risen 37 percent since the start of the war, the current average price is $4.10 per gallon, or approximately 133.84 baht per 3.7 liters. The state with the most expensive standard-grade gasoline in the US is California, with an average price of almost $5.92 per gallon, or approximately 193.26 baht per 3.7 liters.
The closure of the Strait of Hormuz has resulted in a loss of approximately 3-4 million barrels of crude oil and refined petroleum products, including diesel and aircraft fuel, from the global market daily. Diesel reserves in major trading hubs such as Amsterdam-Rotterdam-Antwerp (ARA) have fallen by almost 5% in just one week, while war risk insurance premiums for oil tankers have increased 4-6 times, with transportation costs immediately reflected in retail prices.