WASHINGTON: Diesel prices in the United States have climbed to a fresh record, adding to economic pressure on President Donald Trump as disruptions to global energy supplies push fuel costs higher.
The average price of diesel reached nearly $6.27 per gallon on Tuesday, with the American Automobile Association (AAA) reporting a new high of $6.2694.
Diesel is widely used in freight transportation, farming and construction, making the sharp increase a concern for businesses and consumers. Analysts attributed the surge to tighter fuel supplies amid the conflict in the Middle East and continued Ukrainian attacks on Russian oil refineries.
“The diesel and gas oil markets remain extremely tight,” Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said in a client note.
Rasmussen said an end to Ukrainian strikes on Russian refineries could improve the diesel supply balance, but added that reduced availability of refined petroleum products from the Middle East was having a much greater impact.
He noted that diesel and gasoil prices rose sharply following the outbreak of the conflict with Iran, with refinery “crack spreads” — the difference between crude oil prices and refined fuel prices — also widening.
US diesel prices crossed the $6-per-gallon threshold for the first time on Friday. AAA data showed prices had risen substantially from $3.7577 per gallon at the beginning of the US-Iran conflict.
The latest surge has pushed diesel well above the previous record of $5.8159 per gallon, recorded in June 2022 several months after Russia’s invasion of Ukraine.
The rising cost of diesel could feed into transportation, agricultural and construction expenses, potentially adding to broader inflationary pressures ahead of the US midterm elections.
