Diesel Prices Skyrocket to Record High

Record-high diesel prices are increasing transportation costs across the country, putting pressure on food and shipping industries. The national average for diesel reached $6.06 a gallon last Friday, up from $5.85 a week earlier and about $3.71 at the same time last year.

Farmers in Texas say higher diesel prices are raising their costs at multiple points along the supply chain, from running equipment to moving cattle and crops. The more it costs to grow, move and deliver those products, the greater the pressure on what consumers ultimately pay.

Food could be among the first places consumers feel that pressure, especially with beef, produce and other perishables that have to be hauled and restocked frequently. Diesel also powers tractors, combines and other farm equipment used to grow and harvest crops.

The spike in diesel prices is largely tied to the war in Iran, which has severely disrupted the flow of oil through the Strait of Hormuz. Saudi Arabia temporarily shut down its East-West oil pipeline after a drone attack, adding another threat to supply.