Diesel prices in California hit $7 per gallon again as the wars in Eastern Europe and the Middle East knock out refineries, triggering a fuel supply crunch around the world:
Truckers in the Golden State are shelling out about 30 cents more per gallon than they paid a month ago, according to data from AAA. Prices have surged about 37%, or $1.89 per gallon, compared to the same period last year:
Diesel in California hit a record of $7.75 per gallon in April as Iran choked tanker traffic through the Strait of Hormuz:
Diesel fuels the economy, and higher prices will be felt by consumers. "That's a pretty significant inflationary concern," Kevin Book, managing director at ClearView Energy Partners, told CNBC:
Diesel is used in transportation, heating fuel, agriculture, and industrial uses:
Supply outages
Diesel prices are rising as the wars in Ukraine and Iran have disrupted about 8% of the supply needed to meet 28 million barrels per day of global demand:
Ukrainian drone attacks on Russian refineries have forced Moscow to ban diesel exports of around 800,000 bpd:
Prices are unlikely to ease until damaged refineries come back online in Russia and more exports are coming out of the Middle East:
