The price gap between diesel and gasoline is widening in the global fuel market
In the global fuel market, diesel prices continue to experience a significant divergence from gasoline prices in terms of growth rate and proportion.
Over the past 12 months in the global fuel market, gasoline prices increased by an average of 19.38 percent, while the increase in diesel reached 32.86 percent, widening the gap between the fuels.
Diesel and Gasoline Divergence in the Global Market
Diesel, overshadowed by gasoline prices in the global fuel market, is pulling ahead in the price race. According to a price index covering 175 countries worldwide, the global average diesel price increased about 5 points faster than gasoline over the past three months.
Price Increases in Turkey
Turkey is also among the countries where this global divergence is clearly visible. As of August 31, the three-month price increase for gasoline in Turkey was 14.3 percent, while the increase in diesel rose to 21 percent, meaning diesel increased 6.7 points faster than gasoline.
Economic Role and Demand Elasticity
The fact that diesel rises faster than gasoline is no coincidence. While gasoline is used in passenger vehicles, diesel is used in trucks, ships, trains, and construction machinery. Therefore, diesel demand does not easily drop even when prices rise, and supply disruptions reflect on prices more quickly.
Refinery Congestion and Crack Spread
The most prominent feature of recent price movements is the divergence between crude oil and refined product prices. In the market, it is refining capacity rather than crude oil that is constrained, and the U.S. diesel crack spread surpassed $100 per barrel in August.
Varying Picture Across Countries
A similar divergence is drawing attention in major European economies. In countries such as Germany, France, Poland, and Hungary, diesel prices have shown higher rates of increase compared to gasoline.