Argus launches non-Russian diesel price in Europe

London, 29 March 2022

Global energy and commodity price reporting agency Argus has launched a daily price for diesel of non-Russian origin delivered to Europe.

Russia has been a key supplier to Europe, accounting for up to 60pc of diesel imported into the region each year. Although fuel supplied from Russia is not currently sanctioned, many buyers have been reluctant to purchase Russian diesel since Moscow sent its troops into Ukraine on 24 February.

As a result, non-Russian diesel has been trading at a significant premium to Russian-sourced supplies, and the market has effectively split in two.

At the request of market participants, Argus has launched a new daily assessment for non-Russian diesel, delivered into the Antwerp-Rotterdam-Amsterdam (ARA) port complex. The new price is based on 30,000-60,000t cargoes, arriving 10-25 days after the date of trade.

The new price will represent fair market value of non-Russian diesel, providing buyers and sellers which do not wish to trade Russian diesel with an alternative benchmark value.

Argus will meanwhile continue to publish its existing ARA assessment for diesel with no restrictions on origin.

Argus Media chairman and chief executive Adrian Binks said: “We have seen a two-tier market develop, including in European diesel, which has been heavily reliant on Russian supplies historically. With many companies not wishing to trade Russian-sourced supplies, our new assessment will provide transparency and insight into the market that has emerged for non-Russian origin product.”