Russia's short on fuel, and we'll all be paying for it

We’ve barely had time to recover from the spring fuel price spike caused by the US-Israel war on Iran, which saw diesel prices climb up to €2.43 per litre in April. Since starting to stabilise in May, the fuel market in Europe has now taken another hit. Russia, the world's second-largest diesel exporter after the US, banned diesel exports last week – bad news for anyone waiting for cheaper prices to fill up their tank. Moscow faces a deepening domestic fuel shortage caused by Ukraine's drone strikes on fuel facilities. The ban will stay in place at least until the end of July, while Russia will be importing fuel from abroad to make up for the losses. While the EU doesn't buy diesel directly from Russia anymore, the supply crunch will have global consequences: Russia's regular customers, such as Türkiye or Brazil, will now need to go elsewhere to secure their supply – mainly, the US. This will inevitably drive up prices everywhere, though the situation will likely not escalate as much as in spring. A litre of diesel stayed under €2.00 in Europe according to the latest data from 6 July – before Russia decided on exports. Besides slightly higher costs, the consequences on Europeans will still be rather limited, Georg Zachmann, senior researcher at the Brussels-based think tank Bruegel, told the European Correspondent. Not for Moscow, though. “The impact on Russia is substantial, as it turns from a profitable exporter to a cost-carrying importer, straining its tight budget further,” he said. The severe fuel crisis is indeed one of the most visible signs of the war's effect on Russians' daily life. Long queues are forming at petrol stations across the country. Drivers are spending nights waiting for fuel or travelling to neighbouring regions and abroad to find supplies. Some regions have capped refills at 30–60 litres, while reports of fuel theft are rising. Authorities have introduced fuel sales restrictions in almost all of the country's regions. A grey market is…