Diesel hits all-time high price as Iran, Ukraine wars cut supply

Diesel fuel prices have reached record highs due to global supply chain disruptions caused by the wars in Ukraine and Iran. Reduced refinery output and increased seasonal demand are driving costs up, which will likely lead to higher retail prices for consumer goods.
Why it matters
Rising diesel costs increase the price of freight and logistics, creating inflationary pressure on almost all consumer products.
The price of diesel fuel hit an all-time high Friday as wars on two continents and a global refinery shortage combined with higher seasonal demand to push prices upward. The average nationwide price was $5.85 per gallon, up from $5.78 Thursday, according to AAA’s gas price tracker. Diesel prices began their monthslong rise in late February, with the launch of the Iran war and the soaring oil prices that came with it. More recently, however, those rising prices have been sustained by an escalation in the fourth year of the war between Russia and Ukraine. Russia has long been the world’s second-largest exporter of diesel fuel after the United States. But Ukrainian drone strikes on Russia’s oil refineries have cut into the country’s diesel production.
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