The conflict between the U.S., Israel and Iran has disrupted oil flows through the Strait of Hormuz, pushing up crude oil prices. Higher crude costs have lifted gasoline and diesel prices, contributing to broader inflation. Supply constraints are expected to keep prices elevated until mid‑2027.
The brokerage lifted its December 2026 Brent crude price forecast, citing persistent Middle East supply risks that could keep premiums high. At the same time, oil prices slipped on expectations of increased Russian supplies after a US‑brokered energy‑facility truce. Together, the signals point to mixed near‑term direction with upside bias.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Diesel | USA | FOB | USD 1.49/Liter | August 2026 |
| Diesel | Saudi Arabia | FOB | USD 0.48/Liter | August 2026 |
| Diesel | Russia | FOB | USD 0.97/Liter | August 2026 |
| Diesel | China | FOB | USD 1.19/Liter | August 2026 |
| Diesel | India | FOB | USD 1.03/Liter | August 2026 |
| Diesel | USA | FOB | USD 1.36/Liter | July 2026 |
| Diesel | Saudi Arabia | FOB | USD 0.48/Liter | July 2026 |
| Diesel | Russia | FOB | USD 0.98/Liter | July 2026 |
| Diesel | China | FOB | USD 1.05/Liter | July 2026 |
| Diesel | India | FOB | USD 1.03/Liter | July 2026 |
Stay updated with the latest Diesel prices, historical data, and tailored regional analysis
Asia
In China, the average price of Diesel rose from ~USD 1.05/Liter (FOB) in July to ~USD 1.19/Liter in August, a sharp increase of ~13.3%. India's average prices remained around USD 1.03/Liter (FOB), and Saudi Arabia also remained flat at about USD 0.48/Liter (FOB) during the same period. Asian diesel markets tightened as Middle Eastern fuel exports stayed constrained by the Strait of Hormuz disruption, and the region's fuel imports fell. Refining margins in Singapore stayed very high, lifting export values. China's product exports rose in August after export restrictions were eased, as refiners took advantage of strong margins. Saudi export values stayed unchanged, as shipping disruptions limited how much fuel could leave the Gulf.
Europe
In Russia, diesel averaged approximately USD 0.98/Liter (FOB) in July and edged down to about USD 0.97/Liter in August. Ukrainian attacks on Russian refineries cut processing capacity and disrupted export logistics, which led sellers to offer small discounts to place cargoes. Elsewhere in Europe, prices climbed to record levels in mid-September, as refining margins made up about one-fifth of the retail diesel price in the euro area. Middle Eastern export disruptions and Russian outages left the European refining system stretched.
North America
In the USA, average diesel prices increased from nearly USD 1.36/Liter (FOB) in July to roughly USD 1.49/Liter in August, a rise of ~9.6%. Prices kept climbing into September, when retail diesel reached the highest level on record. Higher crude costs after attacks on Saudi Arabia's East-West pipeline, combined with a very high diesel crack spread, drove the increase. US refiners produced distillates at a faster pace, which supported exports but could not offset global shortages. Prices eased slightly in the final week of September.
Analyst Insight
According to Procurement Resource, diesel prices are likely to stay high as refining margins remain elevated, though stronger refinery output and easing pipeline disruptions may bring some relief.
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Asia
In Saudi Arabia, monthly average diesel prices were ~SAR 1.80/liter in the first two months of the second quarter of 2026. However, in India, monthly average diesel prices were ~INR 92.06/liter in April and ~INR 98.80/liter in the following month, showing a ~7.3% increase. Asia saw a split trend in Q2’26. Early-quarter supply stress came from Middle East crude and product-flow disruption, which tightened refinery output and lifted import concern. India saw stronger price pressure as agriculture, freight, and industrial consumption kept demand active. High-Speed Diesel demand reached 8.73 MMT in May, up 1.6% year-on-year, and retail diesel sales were capped in June to prevent local shortages and bulk buying. Later, Asian pressure eased as South Korean refiners sold more than 10 May-loading diesel cargoes, more than twice April volume, improving regional availability.
Europe
Europe’s diesel market was mainly shaped by import-route risk rather than strong consumption growth. The region remained exposed to middle distillate inflows, and concern rose when East-of-Suez supply was disrupted. Seaborne diesel and gasoil imports recovered in May, reaching 1.5 mb/d in the first 18 days of the month, up from March-April lows, as U.S. barrels replaced missing Middle East supply. Downstream support was moderate. Construction activity improved slightly in April, but industrial production was almost flat, which limited demand-led price strength.
North America
In the United States, diesel prices were ~USD 1.43/liter in April and ~USD 1.48/liter in May, showing a ~3.5% increase. The rise was supported by freight-season consumption and early-quarter supply concern, but the market began to soften later as refinery output improved. U.S. refinery utilization increased from 94.5% in late May to 96.6% in late June, while distillate stocks rose from 100.799 million barrels to 108.599 million barrels. Demand was not consistently strong, as distillate product supplied fell by late June after weekly fluctuations.
Diesel oil or Diesel fuel is a liquid fuel that is used in diesel engines. It is used as an energy source and is one of the most common and widely used fuel for automobiles such as cars. It is prepared from petroleum and from various other sources, such as biomass, natural gas, animal fat, biogas and others. Diesel fuel quality is assessed from its cetane number, which is simply a measure of the delay of ignition of a diesel fuel.
Generators, Engines, Automobiles, Electrical and electronics, Oil and gas
Chevron Corporation, Robert Bosch GmbH, Ishtar Company LLC, PJSC Gazprom, Royal Dutch Shell Plc, Exxon Mobil Corporation, PetroChina Company Limited
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Diesel fuel is prepared from crude oil. During the refining process of crude oil, the viscous dark thick oil is converted into the much lighter Diesel fuel by heating up the viscous liquid at high temperatures and turning it into a vapour. The obtained vapour is then sent to a fractional distillation tower, where it rises and starts to cool down and the hydrocarbon chains within it return to a liquid state, thus, producing Diesel fuel.
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This report presents a detailed cost analysis of diesel production from crude oil using the fractional distillation.
This report presents a detailed cost analysis of biodiesel production from fat or vegetable oil using transesterification.
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