Diesel Is About To Surge - Fill Up Now!
Updated: Sep 18, 2019
In light of the recent attacks on 5% of the world's crude oil reserve in Saudi Arabia, be prepared for surging fuel costs. In order to maintain supply, fuel prices will increase to mitigate demand.
Crude oil is refined to produce diesel, and as crude oil prices increases so can we expect a rise in diesel cost.
Not only will this affect the running costs of transport providers, but it will have an affect on the cost of groceries and other transported goods.
"As the cost of transportation rises, that could mean shipments of other goods, such as groceries, could also increase in the coming months."
Unfortunately, Australia only has 22 days of fuel reserves (compared to America's 90 days), and so waiting for prices to settle once Saudi Arabia repairs and resume exports isn't viable.
Editors Note: as of 4 hours ago, a recent FreightWaves article by Oil specialist John Kingston reads that the crisis may be over sooner than we think, you can read that Here.