SINGAPORE (BLOOMBERG) – Truckers oppose soaring diesel prices in emerging Asian economies, threatening to increase pressure on global supply chains.
The latest protest takes place in Bangladesh, where truck owners and staff have been off work since Friday (November 5), vowing to continue until the government reverses its decision to raise diesel prices by 23 %, according to Truck, Country’s Covered Van and Truck Owners and Workers Coordinating Council.
Earlier this month, truckers in Indonesia’s South Kalimantan met with the local government on a day-long stop to complain about diesel shortages and contraband at gas stations, while in Thailand, tens of thousands of drivers have been on strike since last week demanding a cap on diesel prices.
The disruptions may worsen the growls in global shipping and logistics that have clogged ports and delayed deliveries of finished goods and raw materials. In Indonesia, the truckers’ protest risks a shipping backlog at the port of Trisakti, according to security firm GardaWorld.
Protests intensify as the diesel shortage in Asia worsens, putting pressure on prices in the region which have already risen 64% this year and reached their highest level last month since 2018, according to the reports. Bloomberg Fair Value data. Refining powerhouse China, which traditionally exports fuel, has slowed sales to help ease its energy crisis, while the Philippines increased imports after the refinery shutdown.
âDiesel prices have skyrocketed this year, and countries like Indonesia and Bangladesh that typically import diesel are reeling from the financial costs of the fuel subsidy as import costs have risen. which is unsustainable, âsaid David Wech, chief economist at Energy Shipping. Vortexa analysis firm.
More protests are possible in the region if governments do not act adequately to protect consumers, said Peter Lee, senior energy analyst at Fitch Solutions. Yet government budgets are already under pressure from soaring energy import costs and rising prices for everything from food to charcoal.
As truckers face higher costs, it is not possible for the authorities to “maintain a high level of subsidies for diesel, as world prices rise and state revenues are raised by many. sources have been affected by the protracted pandemic, âLee said.