As a common fuel used in various industries and transportation modes, diesel portends great significance in the economy of any country. In this article, we will take a deep dive into how much is diesel per litre in different countries across the globe, why the price varies, and what factors influence diesel prices.
How much is diesel per litre?
Diesel prices significantly vary across different countries, primarily because of the taxes, demand and supply, and market conditions. According to a recent study conducted by GlobalPetrolPrices.com, the average price of diesel in 167 countries studied was $1.06 per litre.
Diesel Prices by Country:
| Country | Diesel Price |
|---|---|
| United States | $0.78 per litre |
| India | $0.68 per litre |
| United Kingdom | $1.28 per litre |
| Nigeria | $0.47 per litre |
| South Africa | $0.9 per litre |
The above table shows varied diesel prices among different countries. African countries generally have the lowest diesel prices, with Nigeria leading the pack. In contrast, the UK has the highest diesel prices among the countries listed above.
What Factors Influence Diesel Prices?
Several factors influence diesel prices. They include:
Demand and Supply
A primary determinant of diesel prices is the demand and supply dynamics. Factors affecting demand and supply include natural disasters, economic events, and geopolitical risks that destabilize supply chains. Higher demand for diesel often leads to higher prices due to market-driven pricing regulations.
Taxes
Taxes play a critical role in determining the price of diesel. The tax structure in different countries may lead to higher prices for diesel, affecting supply and demand.
Crude Oil Prices
Diesel prices are directly linked to crude oil prices as diesel is a by-product of crude oil. When crude oil prices rise, diesel prices will follow suit.
Conclusion
The price of diesel is a critical determinant of the economy of any country. Different factors influence diesel prices, including taxes, demand and supply, and crude oil prices. While some countries have low diesel prices compared to others, it is imperative to note that pricing variations are intrinsic of every country's economy.
