The jump in oil prices due to the war in the Middle East has translated into fuel price hikes across the world, from the United States to Europe and Asia.
The retail prices of gasoline and diesel have so far jumped by between 5% and 80% in various countries, with the Philippines seeing a record 80% surge, according to estimates by the UAE-based Khaleej Times.
Many governments are scrambling to contain the fallout with emergency measures, including lower levies on domestic sales and bans or higher duties on exports.
India, the world’s third-largest crude oil importer, which depends on Middle Eastern oil for about half of its supply, last week moved to protect its fuel supply and consumers by reducing domestic taxes on gasoline and diesel and imposing a levy on fuel exports.
India was among the first to feel the crunch as it depends on the Middle East for about half of its crude imports. The Strait of Hormuz is also where 90% of India’s imports of liquefied petroleum gas (LPG), the primary cooking fuel in the country, transited before the war.
In the Philippines, a major economy in Southeast Asia, the oil shock has forced the government to declare a national emergency as crude shortages and surging pump prices dim the prospects of economic growth.
“Domestic crude production is negligible, and over 95% of oil imports come from the Persian Gulf, leaving the Philippines exposed to both price swings and supply disruptions,” Deepali Bhargava, Regional Head of Research, Asia-Pacific at ING, said in a Friday note.
In the United States, the average price of gasoline jumped by $1 per gallon in one month, amid the war in Iran and rising demand in the peak spring break season, AAA said.
Rough calculations showed that Americans collectively have spent about $8 billion more on gasoline in the last month since the U.S. attacked Iran, a number that will surpass $10 billion in the days ahead, Patrick De Haan, head of petroleum analysis at GasBuddy, said on Sunday.
By Tsvetana Paraskova for Oilprice.com
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