Global fuel shock: Diesel prices surge up to 81% as Iran conflict rattles oil markets

Global fuel markets have been thrown into turmoil as the war in West Asia — triggered after the United States and Israel launched attacks on Iran on February 29 — enters its fourth week, sending oil prices soaring and pushing petrol and diesel costs sharply higher across several countries. 

With energy supply chains disrupted and markets gripped by uncertainty, the price of crude oil — the key raw material for petrol and diesel — has surged significantly, affecting economies worldwide. 

Crude oil surge driving global fuel prices 

The conflict has had an immediate impact on oil markets. The price of Brent crude oil, the global benchmark for oil, has jumped from around $73 per barrel to over $100, marking one of the fastest increases in recent years. 

Since petrol and diesel are refined from crude oil, higher global crude prices translate into higher fuel costs for governments, businesses, and consumers. Transport, logistics, aviation, and manufacturing sectors are particularly vulnerable to these spikes. 

Energy analysts warn that if tensions in West Asia escalate further, crude oil could remain above $100 for an extended period, pushing inflation higher across many economies. 

Asian countries see the sharpest diesel price spike 

Data shared by Mario Nawfal, CEO and founder of IBC Group, shows that several Asian countries have experienced the steepest surge in diesel prices since the conflict began. 

The Philippines recorded the highest increase globally, with diesel prices jumping 81.6%. This was followed by Malaysia where prices rose 57.9%, and Vietnam with a 45.9% increase. 

Other Asian economies have also seen notable hikes. Diesel prices climbed 44% in Singapore, 25.4% in China, 15.1% in South Korea, and 14% in Japan. 

Experts say Asia’s heavy dependence on imported energy makes it particularly vulnerable to global oil price shocks. 

Europe and North America feel the pressure 

Several Western economies have also seen significant increases in diesel prices. 

The United States recorded a 41.2% jump in diesel prices, while Canada saw prices rise 36.9%. 

Across Europe, diesel prices surged 30.9% in Germany, 27.8% in France, 18% in the United Kingdom, and 14.9% in Italy. Meanwhile, Ukraine reported a 33.9% rise. 

Higher fuel prices in Europe are already pushing up transportation costs, heating bills, and overall inflation. 

Developing economies among the hardest hit 

Some developing and energy-importing nations have seen particularly sharp price spikes. 

Diesel prices in Nigeria surged 78.3%, one of the steepest increases globally, while Sri Lanka recorded a 37.2% rise. 

These increases are placing additional pressure on economies already grappling with currency fluctuations and high import bills. 

A few countries remain insulated 

Despite the global surge, a handful of countries have managed to keep diesel prices stable. 

Prices in India and Saudi Arabia have remained unchanged, while Russia recorded only a 0.5% increase. 

Meanwhile, Gulf nations such as Qatar and the United Arab Emirates saw relatively modest rises of 7.9%. 

Government subsidies, domestic oil production, and fuel price controls are among the key reasons some countries have managed to shield consumers from the global surge. 

Fuel prices play a central role in the global economy because petrol and diesel power transportation, agriculture, shipping, and manufacturing.