Russia-Ukraine War Drives Diesel Prices to Record High
Global diesel prices have hit an all-time high due to constricted supply caused by the ongoing war between Russia and Ukraine. Russia, the world's second-largest exporter of diesel fuel after the US, has seen its production cut due to Ukrainian drone strikes on oil refineries.
The impact is being felt worldwide as farmers rely on diesel for harvesting and planting, while colder temperatures in the Northern Hemisphere increase demand for refined distillate fuels.
US refiners are seeing a surge in exports as they fill the supply gap left by Russia's exit from the market. However, this has pushed up prices even further.
Chef economist Joseph Brusuelas warns that consumers should prepare for higher inflation due to transportation costs, which will be passed on to retailers. This is particularly concerning for grocery stores operating on thin margins.
President Trump met with oil refiners at the White House to discuss ways to alleviate the cost burden on end consumers.