The demand for diesel in Africa and most parts of the world is increasing rapidly due to the soaring price of petrol in the world market and other factors.

In a lot of countries, diesel was kept cheaper than petrol because it can be more economical and has a lower fuel tax. It is also cool to own and drive diesel engines, some of which could even out-perform conventional petrol-powered engine vehicles.

A Swiss research institute had predicted that diesel will account for 80 percent of transport fuel sales in the next 10 years.
According to analysts, if the situation persists, it would put pressure on supplies.

“Demand for diesel fuel is expected to continue to grow as retail consumers start to take notice of the efficiency and durability of diesel engines,” the analysts added.

James Ritterbusch, President of Ritterbusch & Associates, in Galena, Illinois said: “Whenever there's a big rise in one energy market, there's an impact on the psychology of the other markets.”

In Ghana, CITY&BUSINESS GUIDE learnt more petrol vehicles are being converted into diesel cars.

In South Africa for example, report says there is huge diesel demand, largely due to the economic growth, infrastructure development, the current power crisis that has hit the nation and the hike in petrol price on the world market.

South African Petroleum Industry Association (SAPIA) Executive Director, Connel Ngcukana, says demand for diesel surged by over 12 percent this year. South Africa consumes about 25 billion litres of fuel a year, of which about 40 percent or 10 billion litres is diesel.

In Europe, a massive switch to more efficient diesel cars is also putting upward pressure on demand. Diesel sales are up by 40 percent in Britain over the past decade, Reuters reported.

Diesel is now used by 64 percent of motorists in the five major European economies namely Britain, France, Germany, Italy and Spain.

Report also stated that demand for diesel in Eastern Europe, Asia and North America is also increasing rapidly.

A Global Diesel Light-Vehicle Forecast predicted that the demand for the product is expected to continue throughout the year.

The forecast further stated that demand for diesel in Eastern Europe, Asia and North America is expected to surpass growth demand in Western Europe by the early part of the next decade.

According to the forecast, by 2017, North America and Asia will account for 45 percent of global annual demand for diesel, compared with just 25 percent in 2007.

Global demand for light vehicles, according to the Global Diesel Light-Vehicle Forecast report, is expected to grow from 66 million units in 2007 to 92 million by 2017.

“Demand for diesel-powered light-vehicles is projected to increase from 16 million to 29 million during the same period, resulting in an increase in market share from 23.6 percent in 2007 to 31.5 percent by 2017.”

With the exception of Brazil, all of the world's significant personal vehicle markets are now technically open to diesel vehicles, although some markets impose emission limits and or fiscal and regulatory frameworks that make the sale of diesel vehicles economically non-viable.

World oil prices have reached a new peak near $124 a barrel. The rises came despite a US government report last Wednesday showing a surprise increase in US crude and petrol stocks.

US sweet light crude rose as high as $123.87, but then fell back to $123.42, below the record set in Wall Street trade last Wednesday.

Oil prices have gained 25 percent in the past four months, boosted by supply fears and speculations. Goldman Sachs warns oil could reach $200 a barrel soon.

London Brent also rose initially, surging to $122.56, before falling slightly.

By Felix Dela Klutse Source: Daily Guide - Daily Guide