The U.S. national average price of diesel rose above $6 per gallon on Thursday for the first time on record. Oilprice.com, citing GasBuddy data, said the move adds pressure not only on motorists but on the broader economy.
GasBuddy said higher diesel prices feed through the supply chain, raising the cost of groceries, household goods, deliveries and many other products and services. That impact is felt even by households that do not use diesel vehicles.
According to the company, diesel prices in the United States are now $2.30 higher than a year ago. GasBuddy’s head of petroleum analysis, Patrick De Haan, said the latest record would be particularly painful for the economy because it affects virtually every cargo load, shipment and delivery, and is likely to reignite inflation across the supply chain.
The surge is also coming as diesel demand rises seasonally while refineries enter their seasonal maintenance period. Oilprice.com said that combination is adding to inflationary pressure not only in the United States but globally.
The report noted that diesel prices in Europe have climbed above 2 euros per liter, prompting EU governments to extend financial relief measures for drivers in an effort to cushion the blow.
Any meaningful supply relief appears unlikely in the near term. According to the article, the war in the Middle East is escalating, while Ukrainian drone attacks on Russian refineries continue to disrupt a significant share of global fuel supply. The rest of the world lacks enough refining capacity to fully offset losses from the Gulf and Russia, meaning supplies are expected to remain tight and could tighten further.
The article was written by Irina Slav.
