The daily increase in the price of diesel continues, and the U.S. president is now blaming it on his counterpart in Ukraine.
AAA says today's national average price for diesel is $6.31 per gallon, up five cents from yesterday. Today's new record high price compares to:
- $5.95 a week ago
- $5.44 a month ago
- $3.70 a year ago
The American Petroleum Institute explains why the pain at the pump just keeps increasing for drivers and carriers. The API said:
"Diesel is made from crude oil, so their prices usually move together. Recently, they’ve diverged. Like crude oil, diesel is bought and sold in a global market, with its own balance of supply (how much is available) and demand (how much the world needs).
"Disruptions around the world have reduced the amount of crude being turned into diesel and other fuels. That has tightened a market where demand is difficult to reduce, and refiners have limited ability to increase supply."
Those disruptions, according to the API, include:
- In the Middle East, refinery damage from drone strikes and disrupted shipping through the Strait of Hormuz have reduced the amount of fuel reaching global markets.
- Russia, among the world’s largest diesel suppliers, stopped exporting earlier this year after Ukrainian strikes shut down several of its refineries.
- China, a major supplier of diesel to the rest of Asia, sharply curtailed fuel exports earlier this year to preserve domestic supply and has only recently begun easing those limits.
Combined, the API said these disruptions mean the world is processing about 5 million fewer barrels of crude oil per day than it was a year ago. That amounts to almost 10% of global supply.
However, on Sunday, President Donald Trump squarely blamed Ukrainian President Volodymyr Zelenskyy for the increase in diesel prices, and denied the U.S. war with Iran is to blame.
While attending the Irish Open golf tournament, Trump told reporters he had spoken to Zelenskyy about his concerns about diesel supply and prices. Trump said, “Mr. Zelenskyy has to do one thing. He has to stop knocking out diesel fuel in Russia."
On Sunday, Trump also said diesel price increases are not connected to the Iran war. “This isn’t done by the Middle East. This is done by what’s happening with Russia and Ukraine."
Russia, which relies heavily on diesel fuel for its agricultural economy, its domestic logistics industry and its war efforts, recently ceased exporting diesel.
U.S. a major diesel producer
According to the U.S. Energy Information Administration, refineries in the U.S. produce about 5.15 million barrels of diesel per day.
The U.S also produces 4.7 to 5.1 billion gallons per year of renewable diesel and another 1.98 billion gallons per year of biodiesel.
This country also imports some 2.40 billion gallons of diesel, 84% of which has come from Canada.
