Fears Ireland will run out of diesel have risen as global markets begin to feel the squeeze on supply due to sanctions on Russia for its invasion of Ukraine.
Experts have said Europe is at risk of a “systemic” shortage that could result in fuel rationing, reports the Financial Times.
Speaking to the FT, Commodities Global Summit in Lausanne, Switzerland, the head of Vitol, Gunvor and Trafigura - the three largest commodity traders in the world - have estimated that 3 million barrels of oil from Russia could be lost every day.
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Russell Hardy, chief of Switzerland-based oil trader Vitol, said: “Europe imports about half of its diesel from Russia and about half of its diesel from the Middle East.
“That systemic shortfall of diesel is there.”
Russian imports account for approximately 15 per cent of Europe’s diesel consumption, with crude out from the country also being processed by refineries in Europe.
Mr Hardy also pointed out that the shift from petrol to diesel cars in Europe had exacerbated the problem.
He added that refineries could boost diesel output in response to higher prices at the expense of other oil-derived products but said rationing was still a possibility.
Diesel shipments are still flowing from Russia, but if they are stopped, it is predicted that supplies from the Middle East, India and the US Gulf would fill the gap for the time being.
Ireland receives the vast majority of its refined oil products (of which diesel is one) from Britain. However, the UK itself relies on Russia for 18 per cent of its diesel consumption.
The price of both petrol and diesel have skyrocketed in recent weeks, as Irish motorists take a hard hit to their pockets.
Earlier this month, the excise duty was cut on petrol by 20c and on diesel by 15c by the government in an attempt to combat the increases.
However, before the new rule came into place, it was reported that petrol stations across the country had begun hiking up the price of fuel after news emerged of the cut to excise duty, with some selling petrol at more than €2 a litre.
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