Diesel Futures Top $5 a Gallon for First Time Since 2022

US diesel futures have surged above $5 a gallon for the first time since April 2022, amid global supply disruptions and escalating Middle East tensions. The price hike has raised concerns about inflation, as diesel is the fuel that powers delivery trucks, machinery, and farm equipment. The national average for retail diesel prices has already reached $5.98 a gallon, with prices in California averaging $7.91 a gallon. The strain of record-high diesel prices will be felt across the country, particularly in states that rely heavily on heating oil and agricultural states that use diesel to fuel farm equipment. The global fuel squeeze has been exacerbated by reduced Strait of Hormuz flows and Russia’s export ban, which has tightened supplies and depleted stockpiles. As peak demand season begins, the US is drawing down its stockpiles to their lowest ever seasonal levels, increasing pressure on inventories and stoking inflation concerns.