U.S. diesel prices hit record $6 per gallon amid Ukraine and Iran conflicts
On Friday, U.S. diesel prices reached an all-time high of $6.0556 per gallon as global supply disruptions from the wars in Ukraine and Iran continue to impact fuel availability. Analysts warn that sustained elevated diesel costs could severely strain the economy by increasing transportation expenses for goods like food and energy. Truckers and farmers are paying 63% more than they did a year ago, with California seeing even higher prices at $7.9827 per gallon. The surge in crude oil prices—U.S. crude futures topped $100 per barrel on Thursday for the first time since May—is exacerbating fuel costs and contributing to inflationary pressures across sectors reliant on diesel transportation. Experts like Patrick De Haan of GasBuddy describe high diesel prices as a 'silent killer' due to their ripple effects throughout supply chains, while Bob McNally from Rapidan Energy emphasizes that diesel is more impactful than gasoline in driving economic costs. The conflict-related disruptions have knocked out about 5 million barrels per day of refining capacity globally. With U.S. refineries operating at near full utilization and little spare capacity to compensate for the loss, analysts warn this situation poses a significant challenge for policymakers.
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Topics: diesel prices geopolitical tensions inflation supply chain