Diesel prices hit record highs last week, threatening already strained supply chains that rely heavily on fuel for freight trucks whose prices nearly doubled last year. The average cost of diesel fuel in the United States now sits at $ 5.37 per gallon, the AAA says. In contrast to the price of gasoline, whose lunar trajectory has been increasing since the Russian invasion of Ukraine, the price of diesel could rise.
Truckers are already concerned about the rising, uncompensated costs that are likely to drive small owner-operators out of business. Last week, the average retail price of diesel peaked at 00 5.00 / gallon – the highest on record since 2005 – and has risen more than 4% since then. Prices have risen in recent days amid record futures contracts and less than a decade of stocks, putting even more pressure on consumers to cope with rising inflation. Russia’s aggression in Ukraine has tightened global fuel supplies and led to fierce competition for diesel produced along the US Gulf Coast.
According to the trucking association ATA, expensive diesel will give a push to the already under-loaded trucking sector, which consumes about 70% of all diesel used in the country and acts as a barometer of the US economy. Diesel is currently used in agricultural equipment during the biggest planting season for maize and soybeans since 2017.
The deficit is most pronounced on the east coast, where distillate inventory has been at its lowest since 1996. Bloomberg Reports say producers along the Gulf coast have accelerated exports to Latin America and Europe to offset lost resources due to restrictions on Russian oil production, leaving states with inland pipeline suppliers unused along the Atlantic coast.