Diesel hits record high as Ukraine and Iran wars knock out refineries, fueling inflation worries
Higher prices come as Ukraine pounds Russian refineries, forcing Moscow to ban diesel exports.
TL;DR
- Diesel fuel prices have hit a record high, with the national average at $5.85 per gallon.
- California is experiencing even higher prices, averaging $7.70 per gallon.
- The price surge is attributed to refinery disruptions caused by the wars in Ukraine and Iran.
- Diesel is deeply embedded in the economy, used for transportation, heating, agriculture, and industry.
- The conflict in Ukraine has led Russia to ban diesel exports.
- Attacks in the Strait of Hormuz and on regional energy infrastructure have also impacted refinery operations.
- Approximately 5 million barrels per day of refining capacity have been shut down.
- About 8% of the global diesel supply is currently disrupted.
- Higher diesel costs are passed on to consumers as increased prices for goods and services.