U.S. Diesel Prices Just Surpassed a Record $6 Per Gallon. Here Are Three Ways That Affects You
"Not everyone drives on diesel, but everyone consumes on diesel," an expert tells TIME, detailing one of the ways American consumers may bear the brunt of the soaring diesel prices.
U.S. diesel prices reached a record $6.06 per gallon on Friday for the first time in history, driven by the ongoing U.S.-Iran war and disruptions in oil supply. The conflict has caused a significant spike in oil prices, with benchmark Brent crude oil reaching $109 per barrel. The war has also affected Ukrainian oil refineries, reducing diesel fuel production compared to previous years.
While only about 3% of passenger cars in the U.S. use diesel, the fuel is crucial for heavy transport, construction, farming, and military vehicles. In fact, around 75% of all diesel consumption in the U.S. comes from the transportation sector. Heavy vehicles, which rely heavily on diesel, are particularly affected. Experts predict that the cost increases will trickle down to other areas, such as grocery store prices, which could rise by 2-4% if fuel prices increase by 10-15%.
Lower-income households, who spend a higher proportion of their income on food, may be hit the hardest by these price increases.
Written by urgent.news from Time's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
