As it has every day this week, the price of diesel set another new record high today.
At the same time, federal regulators are waiving some driving rules in response to what they call "acute fuel supply issues."
AAA reports the average price of diesel is $6.44 per gallon. Thats up from:
- $6.39 yesterday
- $6.05 a week ago
- $5.46 a month ago
- $3.70 a year ago
The continued escalation of diesel prices is related to the loss of diesel refining capacity caused by the Russia-Ukraine war, and oil supply disruption caused by the U.S.-Iran hostilities.
Because of supply uncertainty, the Federal Motor Carrier Safety Administration Wednesday issued a waiver of some hours of service regulations for drivers hauling gasoline and diesel fuel.
Valid through Dec. 16, the waiver allows a driver to drive up to 16 hours in a 24-hour period, instead of the normal 14 hours.
FMCSA said it took the action because of "global supply disruptions, anticipated increases in the demand for gasoline and diesel fuels in the late summer and fall, and to mitigate impacts on the costs and availability of fuel for transportation service providers, agricultural harvesting, and the traveling public as the demand increases."
The price of diesel may put a damper on the holiday season for many Americans, according to one analyst.
Patrick De Haan, head of petroleum analysis at the fuel price monitoring website GasBuddy, said, “... 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."
