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Global diesel prices are tracking at record highs in real, inflation-adjusted terms as conflicts in the Middle East and Russia continue to disrupt refinery operations and export routes.
The wars have damaged some refineries while leaving others unable to maintain normal output because they cannot source enough crude oil or export the fuels they produce.
Global refinery capacity has been effectively reduced by around 10%, according to some estimates, creating an acute fuel shortage, rapid inventory depletion, and intense upward pressure on prices.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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