Diesel Prices Add Unwritten 25% Surtax on US Goods

Jim Cramer recently made a striking statement on CNBC's Squawk on the Street. He claimed that rising diesel prices have added a 25% surtax to every physical good in the US, equivalent to an unwritten tax that Congress never voted on and consumers cannot opt out of.

Cramer based his argument on the fact that America relies heavily on trucking for goods transportation. As a result, higher diesel prices act as a significant cost burden on retailers, leading to increased prices for consumers.

This framing is particularly relevant given the recent surge in crude oil prices, with WTI crude almost reaching $100 and national gasoline averages over $4 per gallon.

Walmart and McDonald's have already quantified the impact of rising fuel costs on their businesses. Walmart expects 'more than $2 billion of incremental fuel-related costs this year' above initial guidance assumptions, while McDonald's has seen continued inflationary pressures on food and labor costs.