‘From liabilities to goldmines’: refineries eye record profits from diesel shortage
Summary
The global shortage of diesel fuel, caused by damage to refineries in the Middle East and Russia, is expected to continue until 2027. While high diesel prices are increasing costs for businesses and consumers worldwide, some refineries, especially in the US and Europe, are making record profits by selling diesel in this tight market.Key Facts
- President Donald Trump arranged a deal to import Russian diesel to the US to help reduce fuel prices.
- The International Energy Agency (IEA) warns that the diesel shortage will last into 2027 despite efforts to ease it.
- The shortage results from refinery damage due to war and export restrictions, cutting global supply by about 1 million barrels per day.
- Diesel fuels many industries like farming, mining, shipping, and manufacturing and accounts for 10% of the world’s energy use.
- High diesel prices are increasing costs for goods, food, and transport, affecting economies worldwide.
- Some refineries in Europe and the US are benefiting, making record profits and seeing their stock values rise sharply.
- US refinery exports have increased by over 50% in the past year, helping offset losses from damaged refineries elsewhere.
- Companies like TotalEnergies have reported a quadrupling of profits in refining and chemicals due to the crisis.
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