Diesel prices hit new high over $6 per gallon amid supply strain

The national average price of diesel fuel has reached a new high, surpassing $6 per gallon as of September 15, according to the US Energy Information Administration (EIA). The surge in prices is attributed to low inventories and rising demand, exacerbated by ongoing conflicts in the Middle East. Don Schaefer, president of the Mid-West Truckers Association, noted that without a resolution to these issues, prices are likely to keep climbing.

EIA's latest report indicates that US on-highway diesel averaged $6.28 per gallon, a 32-cent increase from the previous week and a $2.54 jump from the same period last year. In the Midwest, diesel averaged $6.25, up 30 cents on the week. Crude oil prices have also risen, reaching a three-month high with Brent crude oil spot prices increasing 7.9% to $130.80 per barrel.

The spike in fuel prices is particularly challenging for farmers and truckers during harvest season, especially those who were unable to secure supplies before the price surge. Schaefer highlighted the difficulty faced by small operators who must pay the current pump price, which he described as 'expensive.' With corn and soybean harvests underway, diesel consumption is at its peak, leaving no option but to continue operations despite the high costs.

A recent bottleneck occurred on September 13 when a power outage at the ExxonMobil refinery in Joliet caused a temporary shutdown. The refinery, capable of processing 275,000 barrels of crude per day, produces about 11 million gallons of gasoline and diesel daily. While the shutdown was brief, any prolonged disruptions could further tighten the fuel market and drive prices even higher.