Fuel prices worldwide are anticipated to continue increasing for several months, even after the reopening of the Strait of Hormuz, according to the U.S. Energy Information Administration (EIA).
The EIA’s forecast indicates that fuel price trends will be influenced by various factors, including the duration of the Strait’s closure and oil production levels in the Middle East.
“Just as we have never seen the closure of the strait before, we have also never witnessed its reopening. What that will look like remains to be determined,”
the EIA stated.
The agency believes that it may take months for oil flows through the Strait of Hormuz to fully recover, even after the conclusion of the ongoing conflict involving the U.S. and Iran. This uncertainty surrounding potential supply disruptions could keep oil prices elevated.
Currently, diesel prices are rising at a faster rate than gasoline, as Middle Eastern countries are vital suppliers of diesel fuel.
Since the onset of the conflict in the Middle East, Iran’s closure of the Strait of Hormuz has led to a significant spike in oil prices, which in turn has caused fuel prices to soar.
In Ukraine, fuel prices at gas stations are reportedly increasing almost weekly. As of Monday, April 6, it was reported that Ukrainian gas station networks had synchronized price hikes across all fuel types.
The most notable increase was observed at state-owned “Ukrnafta” stations, where diesel prices surged by nearly 4 hryvnias.
Fuel prices are expected to rise globally due to ongoing tensions in the Middle East, particularly following Iran's closure of the Strait of Hormuz. The EIA warns that recovery may take months, impacting both diesel and gasoline prices significantly.