IEA Data Show Diesel Up 14% From February as Gasoline Eases
This digest was compiled by AI from multiple sources — links to the originals are below.
IEA data show the average per-liter cost of automotive diesel across tracked countries was $1.94 in July, up 14% from February before the US-Israel war with Iran. Gasoline averaged $1.90 per liter, little changed from June after peaking at $1.99 in May. The persistent diesel premium comes even as Brent crude has retreated to $88 a barrel from $120 in spring.
The Diesel Premium
The IEA’s end-use price tracker, updated August 7, shows diesel at $1.94 per liter globally in July, up from $1.70 in February. Gasoline slipped to $1.90 from a May peak of $1.99. The 14% diesel jump reflects persistent distillate tightness even as crude oil eased. Brent, which spiked to nearly $120 a barrel after the February 28 war trigger, traded near $88 this week.
Supply Disruptions
U.S. and Israeli strikes on February 28 killed Iran’s supreme leader, sent Brent soaring, and choked off tanker traffic through the Strait of Hormuz, which normally handles one-fifth of global oil. Ukraine has struck Russian refineries at least 30 times in July alone, pushing Russian crude processing to a 24-year low and triggering fuel rationing across 90% of the country. These disruptions have squeezed global distillate supplies, keeping diesel prices elevated while gasoline supply held up better.
Regional Variations
Germany’s diesel and gasoline prices each jumped over 10% in July, partly because Berlin’s temporary fuel-tax discount of 17 cents per liter expired June 30. Poland saw even steeper increases. In contrast, pump prices fell in the UK, Ireland, Sweden, and Cyprus, reflecting divergent tax policies and currency moves. In the U.S., the IEA pegged diesel at $4.96 a gallon and gasoline at $3.93, up from $3.78 and $3.12 a year earlier.
What's Next
The U.S. and Iran are negotiating the Strait of Hormuz reopening, but a June 17 memorandum of understanding collapsed within days over shipping-route disputes. It remains unclear whether talks will succeed or if further attacks on tankers and Saudi Arabia’s Jazan refinery will prolong the diesel squeeze.
1 source
IEA Data Show Diesel Up 14% From February as Gasoline Eases
