Global fuel prices have risen sharply as a result of sanctions imposed on Russia and restrictions targeting 117 vessels involved in transporting Russian fuel. The situation has been further exacerbated by Russia’s decision to limit fuel exports following Ukrainian drone strikes on 17 of its refineries, intensifying the upward pressure on prices in the world market.
Diesel prices had already increased over the past two weeks with the onset of winter in Europe, and the upward trend has now extended to petrol, jet fuel, and kerosene.
In addition to sanctions directly targeting Russia, the European Union’s 19th sanctions package—which also affects countries importing Russian fuel, including China—has contributed to the price escalation.
The EU has issued stern warnings to “shadow ships” that transported Russian fuel while disabling their GPS systems to evade monitoring. These vessels reportedly changed their listed destinations mid-voyage. The EU has cautioned 117 such ships that they will be denied entry into European ports if they continue transporting Russian fuel.
As a result, many of these vessels have halted such operations, reducing global shipping capacity. This reduction has driven up shipping fees significantly, creating an additional layer of pressure on global fuel prices.
Due to the ongoing import challenges and supply constraints, oil prices are expected to experience a notable increase by the end of this month. Market data shows a consistent upward trend in fuel prices since June.
