Dallas Fed Survey: Diesel Prices May Stay Elevated for More Than Four Quarters

The Federal Reserve Bank of Dallas has released its latest survey on oil and gas executives' expectations for diesel prices. The survey found that nearly half (48%) of the executives polled expect diesel prices to remain elevated for more than a year, which is compared to 36% who anticipate the same for gasoline. This indicates the long-term impact of the fuel crisis triggered by the Iran war and Ukraine's attacks on Russian refining facilities.

One respondent from an oil and gas support services company noted that 'Diesel is the mother’s milk of the economy. We are just starting to see the impact on the wider economy.' Another respondent expressed doubt about the full recovery of Persian Gulf crude exports, expecting a lower 'normal' baseline once the conflict ends.

The ongoing fuel crisis has been a pressing issue for the Trump administration, with diesel prices near record highs at $6.4139 per gallon, representing a 73% increase from last year. President Donald Trump is considering a diesel export ban as a potential solution, which could slightly raise gasoline prices while lowering diesel prices.