US Diesel Prices Soar Past $6 a Gallon Amid Global Supply Chain Disruptions

Diesel prices in the US have hit a new record, soaring past $6 per gallon on average as Washington's war with Iran disrupts global fuel supplies. According to motor club AAA, the national average of nearly $6.06 is up from $5.85 last week and almost $3.71 this time last year.

The higher diesel prices are causing more expensive transportation for everyday goods, including perishable foods like meat and produce that rely on frequent hauling and restocking. Some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.

Perishable food items, such as seafood and fresh fruit, are often among the first to see price increases due to higher transportation costs, according to David Ortega, a professor of food economics and policy at Michigan State University. He notes that 'early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins.' However, as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.

The International Energy Agency reported that Saudi oil production fell to a three-decade low last month due to Houthi attacks on energy facilities. Disruptions in Russia's refining system stemming from Ukrainian attacks have nearly halted product exports, further contributing to supply chain disruptions and higher fuel prices.