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The price of diesel keeps rising. Why it’s about to hit American consumers.
The Christian Science Monitor • • business
Key Points:
- Diesel prices in the U.S. have hit a record high of $6.45 per gallon, a 74% increase from last year, driven by supply disruptions linked to the wars in Iran and Ukraine.
- The rising cost of diesel, crucial for freight, agriculture, and military operations, is expected to increase prices for food, goods, and services as transportation and production costs rise.
- Supply constraints stem from reduced oil flows through conflict zones, Russian export controls, attacks on refineries, and Iran's closure of the Strait of Hormuz, tightening the global diesel market.
- U.S. refineries are operating near full capacity, but high demand and geopolitical tensions limit immediate relief; experts warn diesel prices will remain elevated through fall and winter.
- Proposed measures like restricting diesel exports face political resistance, and experts agree that resolving geopolitical conflicts is key to stabilizing diesel supply and prices.
