US Diesel Prices Surge Past $6 Per Gallon for First Time
The average price of diesel fuel in the United States has surpassed $6 per gallon for the first time in history, reaching $6.06 on Friday, September 11, according to AAA. This figure exceeds the previous nominal record set in June 2022, which was around $5.82 per gallon, as reported by the Financial Times.
The primary driver behind this price surge is a global shortage of petroleum products. This deficit is attributed to the conflict involving the U.S. and Iran, leading to reduced supplies through the Strait of Hormuz. The situation is further exacerbated by Ukrainian strikes on Russian oil refineries, Russia's export restrictions on diesel, and China's limitations on oil product exports.
U.S. diesel inventories are currently about 13% below the five-year average. Since February, diesel prices in the U.S. have increased by nearly 60%. This rise significantly impacts the American economy, as diesel is the primary fuel for trucking, agricultural machinery, and much industrial equipment.
The increased transportation costs are intensifying inflationary pressures, gradually affecting the prices of food and other goods. Concurrently, oil prices have also climbed, with Brent crude exceeding $100 per barrel. Analysts caution that if supply disruptions persist, high diesel prices could continue into early 2027. It is noted that the current price is a nominal record; adjusted for inflation, diesel was more expensive in the U.S. before the 2008 financial crisis.
