Diesel prices hit an all-time high on Friday. Then another, and another.
According to AAA, the average price of diesel now stands at a staggering $5.94 — about $2.27 more than in late February, when the United States and Israel launched a war against Iran. The jump has been even higher in some states, such as California, where a gallon of diesel currently costs $7.87.
Most Americans don’t buy diesel fuel, but they pay for it. It powers the trucks and ships that move everything from milk to lumber, and the costs are embedded in the prices people see at stores. The last time consumers saw diesel prices climb to such heights was in 2022, when Russia invaded Ukraine and they hit $5.82 per gallon.
This year, the Iran war has largely closed the Strait of Hormuz, through which 10 percent of seaborne diesel once traveled. This has sent prices soaring, and consumers are increasingly feeling the impact.
“Early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins,” David Ortega, a professor of food economics and policy at Michigan State University, told the Associated Press. “But as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.”
