Strange as it may seem, fuel prices differ considerably in various countries around the world. There are many factors for that phenomenon:
· Sulfur (the more sulfur diesel contains, the higher the price is)
· Production costs
· Quotes defined by major oil companies
· State policies
· Extra charge (price markup)
· Speculative factor etc.
Global Diesel Prices
The following chart, courtesy of , represents the list of diesel prices for various countries of the world:
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According to , the highest prices are seen in North European countries. Norway is the leader – €1.85 per liter. Sweden (€1, 76), the UK (€1, 75), Turkey (€1, 73) and Italy (€1, 69) come next. The cheapest diesel fuel is sold in Azerbaijan, Russia and Belarus.
Expert Opinion: Volatile Prices Ahead
At this point, the major market driver for oil (gasoline, diesel) prices is the geopolitical instability currently seen in major oil-producing regions. Oil is traded heavily. Therefore, logistics, transportation, storage, refining and other aspects have a considerable impact on gasoline and diesel prices.
However, the global economic slowdown is a bearish factor for crude oil and oil products because lower industrial production results on lower demand for oil.
The situation in the oil market has changed since July. Diesel fuel has appreciated by nearly 8% since then.
