Switzerland diesel prices hit record high

Diesel prices in Switzerland have reached a record high, with the average cost per liter currently at 2.41 francs, surpassing the previous 2022 record. Experts warn that if international tensions worsen, prices could climb to between 2.70 and 3.00 francs per liter.

Several factors are driving this increase, including geopolitical tensions in the Middle East, pipeline issues in Saudi Arabia, and risks to shipping in the Red Sea. Additionally, attacks on Russian refineries have reduced the global supply of crude oil and diesel.

Domestic logistical challenges are also impacting the Swiss market. Shipping costs on the Rhine river have increased eight to ten times above normal levels due to low water levels, which also limits cargo capacity. Furthermore, a temporary work stoppage at the Cressier refinery in Neuchâtel, which typically meets 30 percent of Switzerland's oil product needs, has tightened local supply.