The U.S. national average price of diesel surpassed $6 a gallon for the first time ever on Thursday, according to price tracker GasBuddy, as the U.S.-Iran war and Ukrainian attacks on Russia’s refineries have squeezed supply.
The record comes as oil futures have climbed back above $100 a barrel on the intensification of conflict between the U.S. and Iran. On Thursday, crude oil futures hit their highest level since mid-May, with Brent settling at $107.63 a barrel and West Texas Intermediate futures settling at $102.48 a barrel.
“Every truck, every delivery, every package, every grocery run just got more expensive,” GasBuddy analyst Patrick De Haan said on social media site X.
“This will be a particularly painful one for the economy that may not even be immediately felt, but record diesel prices will impact every cargo, shipment, every delivery Americans are taking, and are likely to reignite inflation up and down the supply chain,” he said. Prices are up roughly $2.30 from a year ago, according to the fuel tracker.
Diesel inventories are currently 13% below their five-year average, according to the U.S. Energy Information Administration, at 106.3 million barrels. Stocks rose last week as refiners are running their plants at full tilt due to strong refining margins.
(Reporting by Shariq Khan in New York; editing by David Gaffen)