IEA warns diesel and fertiliser pressures could lift food prices
Diesel prices have doubled since the Middle East war began, while Malaysia relies on the Persian Gulf for some diesel and urea fertiliser supplies.
Higher diesel costs and disrupted fertiliser supplies could hamper farming and push food prices up over the coming months, the International Energy Agency (IEA) warned in Singapore on Oct 26.
IEA executive director Fatih Birol said diesel prices had doubled since the Middle East war began. He warned that agricultural costs may be increasing just as several countries begin planting, with implications for both farming and the global economy.
The war also coincides with the multi-year El Niño heatwave cycle, which could damage trees and reduce crop production. Malaysia gets nearly one-tenth of its diesel supply and about one-fourth of its urea fertiliser supply from the Persian Gulf.
In April, Food and Agriculture Organisation chief economist Máximo Torero Cullen warned that countries using fertiliser would face higher prices. He said rising costs could reduce fertiliser use and lower yields, with the effects becoming clearer during the latter half of 2026 and beyond.
