Note: Today’s post is part of our “Editor’s Pick” series where we highlight posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. This recent Freight Perspectives post highlights how the war with Iran is affecting diesel prices across Europe and how different countries are responding.
Two weeks ago, we warned that the de facto blockade of the Strait of Hormuz could shatter the balance of the European diesel market, and unfortunately, the “prolonged blockade” scenario we modeled is becoming our new reality. The sudden loss of a significant share of global oil supply has pushed crude prices past the $ 100-per-barrel threshold, triggering historic, asymmetric retail diesel price spikes across Europe.
The effects of this macroeconomic shock have hit European pumps with unprecedented velocity, heavily assisted by multiplying factors of national excise and tax structures. Below is a breakdown of the relative and absolute commercial diesel price changes across key European markets between Weeks 9 and 11.
The reason for large variance in diesel price developments across the major European countries partially lies in differences in local policies.
Germany, France, Denmark, and Sweden have rejected immediate fuel-price shields or direct tank rebates, prioritizing budget conservation and instead relying on antitrust authorities to monitor retail price hikes. The Spanish, Italian, and Austrian governments have expressed a more cautious approach and are considering tax-cut measures, but have implemented none yet.
[Editor’s Pick] European Freight Rates Face Immediate Corrections on Soaring Diesel Prices
Note: Today’s post is part of our “Editor’s Pick” series where we highlight posts published by our sponsors that provide practical knowledge and advice on timely and important supply chain and logistics topics. This recent Freight Perspectives post highlights how the war with Iran is affecting diesel prices across Europe and how different countries are responding.
Two weeks ago, we warned that the de facto blockade of the Strait of Hormuz could shatter the balance of the European diesel market, and unfortunately, the “prolonged blockade” scenario we modeled is becoming our new reality. The sudden loss of a significant share of global oil supply has pushed crude prices past the $ 100-per-barrel threshold, triggering historic, asymmetric retail diesel price spikes across Europe.
The effects of this macroeconomic shock have hit European pumps with unprecedented velocity, heavily assisted by multiplying factors of national excise and tax structures. Below is a breakdown of the relative and absolute commercial diesel price changes across key European markets between Weeks 9 and 11.
The reason for large variance in diesel price developments across the major European countries partially lies in differences in local policies.
Germany, France, Denmark, and Sweden have rejected immediate fuel-price shields or direct tank rebates, prioritizing budget conservation and instead relying on antitrust authorities to monitor retail price hikes. The Spanish, Italian, and Austrian governments have expressed a more cautious approach and are considering tax-cut measures, but have implemented none yet.
Read More at Freight Perspectives
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