The Spanish newspaper El Pais reported that the European Union may lose Russian products that are indispensable in the current conditions, especially diesel fuel, due to the embargo on Russian oil.
The Spanish newspaper El Pais indicated that the price of diesel fuel is still at the highest level, despite a slight decrease in the price of gasoline in the European Union.
Journalist Ignacio Varesa said in a report: “Every gas station costs a lot of money, and such a jump in fuel prices after the Corona pandemic is linked to the rise in prices of major raw materials such as oil, however there are other factors that also affect the cost of diesel and gasoline.”
He added that “Europe is a net exporter of gasoline, but it needs more diesel than it can produce, and still more than a third of this commodity comes from Russia, and its forced abandonment contributes to high prices for several months.”
This was confirmed by the chief economist of Vortexa: “Of all Russian oil products, diesel is the most difficult to replace.”
Experts say that due to the current circumstances, the European Union is unable to compensate for the shortage of diesel from Russia, neither by itself, nor by increasing supplies from alternative sources.
They pointed out that most of the local refineries closed due to the decline in profitability, while the number of electric vehicles increased, which contributed to the increase in demand for diesel.
Western countries are facing high energy prices and high inflation due to the imposition of sanctions on Moscow and the policy of abandoning Russian energy resources. Against the background of rising fuel prices, especially gas, industry in Europe has largely lost its competitive advantages, which also affected other sectors of the economy.