Iowa Diesel Prices Soar to Record High Amid Global Supply Crunch
The average price for a gallon of diesel fuel in Iowa has reached a record high of $6.06, up 58% from last year, according to Triple-A.
R. Tyler Priest, a University of Iowa historian who's written extensively on the oil industry, notes that diesel fuel is often referred to as 'the workhorse of the global economy' because it powers semis, combines, tractors, construction equipment, trains, and ships.
'The increase in diesel prices ripple through the economy in ways that gasoline does not,' Priest said, emphasizing its importance to commerce, trade, and food production.
The tight global supplies of gas, diesel, and other petroleum derivatives are due to tensions in the Persian Gulf and Russia's war with Ukraine, while US refineries are producing at maximum capacity and exporting record amounts of diesel.