U.S. Diesel Nears $6 a Gallon as Global Supply Squeeze Drives 61% Annual Jump
Updated
Updated · CBS New York · Sep 10
U.S. Diesel Nears $6 a Gallon as Global Supply Squeeze Drives 61% Annual Jump
3 articles · Updated · CBS New York · Sep 10
Summary
$5.98 a gallon — and already above $6 by GasBuddy's measure — U.S. diesel prices are nearing a new milestone after rising 61% from $3.71 a year ago, according to AAA.
A global supply squeeze is driving the surge: escalating U.S.-Iran fighting has lifted Brent crude, while Ukrainian drone strikes have cut Russian refining capacity and diesel exports.
Diesel's broad use in trucking, rail, construction and farming means the hit is spreading beyond fuel markets; Labor Department data showed diesel accounted for more than a third of August's jump in producer goods prices.
Businesses have mostly absorbed the increase so far, but economists say that cushion could fade within weeks as contracts reset and fuel surcharges kick in, pushing up prices for groceries, furniture and car delivery fees.
The pressure may last well beyond this year, with S&P Global Energy saying global oil production is no longer expected to recover to prewar levels by the end of 2027.