The price for a gallon of diesel fuel hit another record month, costing $5.62 compared to the average $2.44 per gallon the same time last year, according to the American Automobile Association (AAA). The cost increases come as diesel inventories sit at historic lows.
"Fuel prices have surged as efforts to isolate Russia, one of Europe's most important energy suppliers, upend international markets," reads a Transport Topics article. "U.S. Gulf Coast refiners have stepped in to fill the global void, maximizing diesel production and sending a record number of exports. U.S. gasoline inventories stand at the lowest for this time of year since 2019 and diesel stocks are touching levels not seen since 2008."
And with no signs of cooling diesel prices anytime soon, the costs are likely to get passed down to businesses and consumers. "To cover the increased cost of diesel, truckers must increase the rates charged to haul freight," Ron Faulkner, president of the California Trucking Association, wrote recently in the Fresno Bee. "These increased rates are then passed on to consumers via higher costs at the retail level. So, you are paying for high prices of fuel both at the pump and at the grocery checkout line."