Global Demand Destruction: Subsidies, Empty Gas Stations, Rationing, Flight Cancelations, Export Limits, Price Controls
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by Tyler Durden
Monday, Mar 30, 2026 - 05:11 AM
In the past two weeks we have discussed demand destruction as a result of soaring oil prices (here and here), and we are increasingly seeing anecdotal evidence of just that (here is a table from Goldman we showed previously, laying out where demand destruction is most acute).
According to UBS, a shortage of jet fuel in Asia and very high prices for what is available are now leading to greater flight cancellations. European jet fuel trades around $1713/tonne, up 114% since the war began. Singapore fuel is up around 140%. Both Vietnam Airlines and Air New Zealand have had to cancel flights due to limited fuel supply.
Let's go down the list.
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Panic buying prompts PM to reassure Australians over fuel supply (bbc)
Australia will halve its fuel excise for three months from Wednesday after prices soared to a record last week as the impact of the Iran war spreads. Meanwhile, the average price of a liter of diesel jumped above A$2.82 last week, while petrol was almost A$2.40, both the highest in at least 20 years. The average price in rural regions like the Northern Territory was even higher, a blow to farmers and long-distance transport firms.
https://www.zerohedge.com/markets/global-demand-destruction-subsidies-empty-gas-stations-rationing-flight-cancelations-export