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U.S. Diesel Hits Record About $6.31 a Gallon

Tight distillate supplies driven by Middle East attacks are likely to push prices higher in the near term.

Overview

  • U.S. diesel reached an all-time national average near $6.31 per gallon on Wednesday with new state records reported in Michigan, Wisconsin and Texas.
  • Analysts trace the surge to supply shocks from Middle East attacks, damage to Saudi pipeline infrastructure, strikes on Russian refineries, export curbs and low U.S. distillate inventories.
  • Truckers, farmers and small transport firms say fuel bills have jumped dramatically and major carriers warned higher diesel will cut corporate earnings by several percentage points.
  • Price trackers and analysts warn of more near-term volatility with national diesel possibly topping $6.50 and some Midwest markets approaching $7 if flows and refinery output do not recover.
  • Policymakers are under pressure for relief measures as households absorb higher costs and a Brown University tracker estimates roughly $107 billion in extra U.S. fuel spending since the conflict began.