Diesel Prices Reach Record $6.20 per Gallon Amid Middle East Tensions
U.S. diesel prices hit a national high of $6.20 per gallon as disruptions in the Strait of Hormuz and other global supply issues tighten the market, raising concerns for consumers and businesses ahead of the midterm elections.
Diesel fuel in the United States climbed to a record $6.20 per gallon, according to the American Automobile Association, after averaging $3.69 in January. The surge follows ongoing disruptions to oil shipments through the Strait of Hormuz, a key maritime route for global oil supplies, as well as strikes on Russian energy facilities and limits on Russian diesel exports.
Economists note that diesel powers a wide range of essential sectors, including trucking, agriculture, freight rail and construction, meaning higher costs could eventually be reflected in prices for groceries, packages and building materials.
"We all focus on gasoline because, ultimately, we're consumers and pump prices are very visible. But what we don't think about is the price of diesel, which is the workhorse fuel for the U.S. economy and especially for key sectors," said Bernard Yaros, lead U.S. economist for Oxford Economics.
"Take the food industry, for instance. Diesel powers the irrigation pumps, the tractors in the field and the trucks that bring food from the farm to your local grocery store," Yaros added.
The price increase arrives as the Republican Party seeks to emphasize affordability in its campaign messaging for the upcoming November congressional elections. President Donald Trump has pledged to lower energy costs but indicated that high oil prices might persist through the election period. The White House did not respond to requests for comment.