The price of diesel took a major jump over the weekend.
The price of diesel broke the $6 barrier for the first time ever last week and increased sharply over the weekend, driven up by escalating uncertainty in the Middle East, and the Ukraine-Russia war.
AAA reports the average price for diesel today is $6.23 a gallon, up from $5.97 Thursday. A year ago, diesel was $3.70 a gallon, according to AAA.
Oil prices have surged as hostilities continue between the U.S. and Iran and an escalation in fighting between Saudi Arabia and the Iran-backed Houthis in Yemen, according to the International Energy Agency. The IEA also said refinery capacity has been reduced as Ukraine continues attacking Russia's oil infrastructure.
The record diesel price, while especially painful for truckers, has implications for the broader economy and most Americans.
Fuel monitoring website GasBuddy said, "While gasoline gets the headlines, diesel is the fuel that moves the economy, powering the freight trucks, trains, agricultural equipment, and construction machinery behind nearly everything Americans buy. That means its impact reaches far beyond the transportation sector."
Patrick De Haan, head of petroleum analysis at GasBuddy, said, "Not every day are new all-time records set, and 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. And for now, it comes at a time of year when diesel prices also traditionally rise, adding more pain. I suggest Americans anticipate a costlier holiday season, as it appears diesel prices could continue climbing as geopolitical tensions continue to remain a main factor."
