Diesel Prices Surge Amid Global Shortage
The price of diesel fuel is nearing an all-time record high, affecting truckers, farmers, and consumers alike. According to the American Automobile Association (AAA), the national average price of diesel hit $5.62 per gallon, while regular gasoline averages $4.10 per gallon.
War in Ukraine and ongoing campaigns against Iran are partly responsible for higher fuel prices. The global oil market is also experiencing a shortage due to damaged Russian refineries and limited crude oil supplies through the Strait of Hormuz.
Freight carriers, farmers, and construction companies are particularly vulnerable to rising diesel costs. A single semi-tractor may burn over 14,000 gallons of fuel per year, with prices increasing from $51,800 to $78,680 in just a few months. The trucking industry burns an estimated 36.5 billion gallons of diesel annually.
Russian refineries have been severely impacted by drone strikes, resulting in suspended diesel exports and a 40% reduction in refining capacity. US refineries are operating at maximum capacity to meet global demand, but the shortage persists.