U.S. diesel prices have topped $6 per gallon for the first time on record. With trucking and delivery expense rising, inflationary pressure could increase, posing a burden for President Donald Trump and the Republican Party ahead of the November midterm elections.
On the 10th (local time), Reuters said GasBuddy, a U.S. fuel price information firm, reported that the nationwide average diesel price in the United States surpassed $6 per gallon (1 gallon=3.79L) for the first time on record.
Diesel prices have repeatedly set a record high this month alone. On the 3rd, they reached $5.87 per gallon, surpassing the previous record high of $5.82 set in 2022, and rose to $5.90 on the 9th. Compared with late February when the Iran war began, they are up 61%.
It is seen as a result of international oil prices rising amid the Iran war and Ukraine's attacks on Russian refineries, coupled with a shortage in diesel supply.
On the day, November delivery Brent crude settled at $107.63 per barrel, and October delivery West Texas Intermediate (WTI) at $102.48. Both benchmarks recorded their highest levels since mid-May.
Diesel inventories in the United States are also tighter than usual. According to the Energy Information Administration (EIA), diesel stockpiles stood at 106.3 million barrels, 13% below the recent five-year average.
The crack spread, which shows the profit earned when refining crude oil into petroleum products such as diesel, hit a record high of $112.17 per barrel. It means prices of petroleum products, including diesel, have risen faster than crude due to supply shortages.
Gasoline prices have also climbed sharply. The American Automobile Association (AAA) said the nationwide average gasoline price in the United States is around $4.20 per gallon, up 32% from $3.19 a year earlier.
Rising diesel prices can affect overall product prices through trucking and delivery costs. With voter dissatisfaction over living costs growing and fuel costs surging, the burden on President Trump and the Republican Party ahead of the November midterm elections is also likely to increase.
Patrick De Haan, a GasBuddy analyst, said, "All trucking and delivery, parcel and courier services, and grocery shopping will incur more expense," adding, "Record-high diesel prices are likely to reignite inflation across the supply chain."