Diesel prices have surged to record highs as conflicts in the Middle East and Ukraine disrupt supplies, adding to inflation pressures in the fuel-importing euro zone and complicating the ECB's efforts to keep price growth under control, Reuters reported.
"Energy prices, particularly diesel, will probably stay high for long and that will feed into inflation because diesel is really in many products," Vujcic told an event at the Federal Reserve Bank of Cleveland.
He said drone attacks on Russian refineries had curbed supply, while the war on Iran was disrupting traffic through the Strait of Hormuz and Chinese refiners appeared to be prioritizing domestic demand over exports.
The diesel market, already squeezed by supply disruptions linked to the conflicts in Ukraine and the Middle East, was jolted anew this week when US President Donald Trump voiced support for a potential ban on US diesel exports.