US diesel prices have reached their highest level ever, with averages soaring past $6 a gallon and futures surging above $5 a gallon for the first time since April 2022. The price of the fuel has increased by more than 60% over the last year.
This surge is a sign of a deepening global fuel squeeze as wars disrupt supplies and rapidly erode fuel stockpiles around the world. Supply disruptions stemming from the Ukraine and Iran wars have hindered the flow of fuel, with prices jumping to new highs over mounting fears that the fighting between the United States and Iran could expand into a full-scale war.
As diesel is the main fuel for vehicles carrying goods across the country, these higher prices are expected to lift transportation costs and lead to inflationary pressure. Energy experts say this surge is likely to continue.