Iowa Diesel Prices Hit Record High Amid Global Supply Shortages

The average price of diesel fuel in Iowa has reached a record high of $6.06 per gallon, according to AAA. This represents a staggering increase of 58% from last year's prices.

R. Tyler Priest, a University of Iowa historian who has written extensively on the oil industry, notes that diesel fuel is often referred to as 'the workhorse of the global economy' due to its widespread use in transportation and industries such as agriculture and construction.

Priest warns that the increase in diesel prices will have a ripple effect throughout the economy, impacting commerce, trade, and food production. He attributes this largely to global supply chain disruptions, including tensions in the Persian Gulf and Russia's war with Ukraine, which have put pressure on refineries to produce more oil.

The U.S. is also exporting record amounts of diesel, further straining domestic supplies. Additionally, refineries often shut down for maintenance during late fall and early winter, which may exacerbate price increases.