The High Cost of Diesel

Christopher Coye

The same cannot be said about diesel. The price of diesel continues to increase on the global market, largely due to the conflict between Ukraine and Russia. Minister Coye told us more.

Christopher Coye, Minister of State, Ministry of Finance

“In the case of diesel it is a significantly different story, diesel price has not come down in the same way regular price have come down. The explanation given to us is in the case of what is happening in Europe, the war in Ukraine, and their adjustment in terms of shifting away from natural gas. Remember that Europe has been getting much of their natural gas from Russia. The effort is to try and wean off Russian natural gas, the substitute for that natural gas, until whatever is coming from the US kicks in, is diesel. And so, because that has become the substitute, the demand for diesel has gone up, which means the price increased as well. So, the diesel prices have not come down anywhere close to what it was back in January. So, it is hard to reduce the price of diesel when the acquisition cost has not come down to allow that.”