Diesel Prices Soar Past $6 a Gallon for the First Time

The national average diesel price in the US has reached a record $6.05 per gallon, up from $3.70 last year, due to the US-Iran war disrupting fuel flows and pushing crude oil above $100 a barrel. This increase is expected to raise transportation expenses and potentially lead to higher grocery and consumer goods prices as fuel surcharges spread through supply chains. The International Energy Agency reported that Saudi oil production fell to a three-decade low last month due to Houthi attacks on its energy facilities, and losses in the Middle East have been amplified by the war in Ukraine. Diesel prices have been more expensive than gasoline in the US for decades, and its price has risen at a faster pace before. The surge in diesel prices is expected to have a ripple effect on the economy and wider costs of living, particularly in the grocery aisle, where perishable foods like meat and produce are likely to see price increases first. Fuel accounts for roughly 15% to 30% of the total cost of food, according to the Independent Grocers Alliance.