Diesel prices surpass $6 average for first time in history
The average price of diesel jumped over the $6 mark for the first time ever on Friday, setting the stage for broad price hikes in the United States. The national average hit $6.06 per gallon, surpassing the high watermark of $5.82 set in June 2022, AAA reported. The global supply chain's reliance on diesel fuel means rising prices are likely to raise costs in many other areas, including at the…
For the first time in recorded history, the average price of diesel fuel surged past the $6 threshold on Friday, according to AAA. This marks a significant increase from June 2022 when the national average peaked at $5.82 per gallon. The sharp rise in diesel prices could have far-reaching consequences, potentially driving up costs across various sectors, including grocery stores.
The surge in diesel prices is attributed to a 55 percent increase since the United States and Israel initiated strikes on Iran in February. Experts predict that this year could see the largest annual percentage increase in diesel prices ever recorded. The ongoing conflicts in Iran and between Russia and Ukraine have contributed to a 8 percent reduction in the global diesel supply.
Refiners, as noted by Andy Lipow, president of Lipow Oil Associates, are operating at maximum capacity and cannot produce any additional diesel. The diesel shortage is a direct result of the global fuel market's inability to produce more diesel.
Meanwhile, the price of regular grade gasoline has also seen a significant rise, reaching $4.29 per gallon for Friday, which is the highest price ever recorded for gasoline.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Diesel prices surpass $6 average for first time in history koreatimes.co.kr
