Diesel hits record high as Ukraine, Iran wars knock out refineries
Global diesel prices have reached record highs due to refinery disruptions caused by the wars in Ukraine and the Middle East. Analysts warn that these costs will likely drive inflation, as diesel is essential for transportation, agriculture, and industrial operations.
Why it matters
The supply crunch in diesel fuel acts as a significant inflationary pressure on the global economy, affecting the cost of goods and logistics.
The price of diesel fuel hit a record Friday as the wars in Ukraine and Iran knock out refineries, triggering a global supply crunch.
Truckers in the U.S. are paying an average of $5.85 a gallon nationwide, a nearly 60% increase over the same period last year when diesel cost $3.71 a gallon. In California, diesel costs $7.70 per gallon, almost $2 a gallon more than the national average.
Diesel prices feed directly into higher inflation, said John Kilduff, partner at Again Capital. "You can do all the virtual shopping you want, it's all going to come to your house on a truck that ran on diesel fuel so there's no way around it," Kilduff told CNBC's " Morning Call ."
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6 other newsrooms covered this event. We read each version separately.
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