Diesel prices are now at the highest level ever recorded in the United States.
The national average hit a record $6.51 per gallon today. Prices rose 3.9% from July to August alone.
That's up more than 73% since the Iran war began, and this is not just a problem for truckers. Diesel-powered trucks deliver food and goods across the country, and diesel also fuels much of the nation's farm and construction equipment.
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Record fuel costs can ripple through the economy and eventually reach consumers. President Trump is blaming the record diesel prices on the war in Ukraine.
The president says Ukrainian attacks on Russian refineries have disrupted global diesel supplies. However, the war with Iran is also contributing to disruptions in global fuel markets.
Last month, a report from the San Francisco Federal Reserve Bank found that U.S. household inflation expectations rise when consumers expect higher gas prices, but remain relatively unchanged when prices at the pump fall.
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“Our results suggest that gasoline price pressures may leave a more persistent imprint on household inflation outlooks when prices climb than when they subside,” according to the authors of the report.
As diesel prices continue to climb, many warn that increased costs could eventually be reflected in the prices consumers pay across the board.
