On July 21, at Digi24, about Europe's vulnerability when it comes to diesel. Within the continent, our region (South-Eastern Europe) has a high dependence of the car fleet (especially passenger vehicles, but also heavy transport and agricultural machinery) on diesel. The phenomenon of excessive dieselization is due to fiscal policies that for decades overcharged gasoline, forcing drivers to turn to diesel cars at the expense of gasoline ones. This structural legacy is what makes us more vulnerable today. The second factor is related to the fact that Europe does not cover its diesel needs only from what European refineries produce, so it is dependent on imports. The third factor is related to the unresolved situation in the Strait of Hormuz: Iran says that the strait is closed, and the USA says that it is open. The fourth factor is related to the refining sector in Russia, heavily damaged by the Ukrainian drone attack. As a result, Russia banned the export of diesel fuel until the end of July. Moreover, Russia is looking to import diesel fuel from other countries. All this will complicate the diesel supply equation in the short term in our area.
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