Experts warn that Ireland could face diesel shortages
Fears that Ireland will run out of diesel are rising as global markets begin to feel the squeeze on supply due to sanctions on Russia for its invasion of Ukraine.
Experts have warned Europe is at risk of a “systemic” shortage that could result in fuel rationing, according to the Financial Times.
Commodities Global Summit in Lausanne, Switzerland, the head of Vitol, Gunvor and Trafigura – the three largest commodity traders in the world – have estimated that 3 million barrels of oil from Russia could be lost every day.
Russell Hardy, chief of Switzerland-based oil trader Vitol, said: “Europe imports about half of its diesel from Russia and about half of its diesel from the Middle East. That systemic shortfall of diesel is there.”
Russian imports account for approximately 15 per cent of Europe’s diesel consumption, with crude out from the country also being processed by refineries in Europe.
Mr Hardy also pointed out that the shift from petrol to diesel cars in Europe had exacerbated the problem.
Ireland receives the vast majority of its refined oil products (of which diesel is one) from the UK. However, the UK itself relies on Russia for 18 per cent of its diesel consumption.
The price of both petrol and diesel have skyrocketed in recent weeks, as motorists take a hard hit to their pockets.
Earlier this month, excise duty was cut on petrol by 20c and on diesel by 15c by the government in an attempt to combat the increases.