Diesel prices in the U.S. are rising again: fuel prices are approaching a record high
On Tuesday, September 2, the average retail price of diesel fuel in the U.S. rose to $5.69 per gallon, or about $1.50 per liter. This is the highest level since April, when prices surged amid the outbreak of war with Iran.
What Is the Highest Price and What Factors Are Driving It?
According to the American Automobile Association, the current price is approaching the record high of $5.82 per gallon ($1.54 per liter) set in June 2022 during the energy crisis.
Prices are being driven by disruptions in the fuel market caused by the conflict in the Middle East and Russia’s war against Ukraine. Russia, a major fuel supplier, has cut exports following attacks on its oil refineries.
Diesel is used in freight transportation, agriculture, and construction. Therefore, rising diesel prices increase companies’ costs.
Goldman Sachs, one of the world’s largest investment banks, warns of tensions in the diesel market. Its experts note that attacks on oil refineries in the Middle East and Russia have reduced global supply capacity.
What to Expect This Fall
According to analysts, U.S. refineries are operating at nearly full capacity, yet diesel inventories in the U.S. remain at their lowest levels for this time of year.
Demand may rise this fall due to the harvest season and the start of the heating season. Some U.S. households use heating oil for heating, which is similar in properties to diesel fuel.
This week, U.S. President Donald Trump called on American oil refiners to increase production of diesel and gasoline. He made it clear that he wants lower prices at the pump for Americans, as his team faces mounting challenges regarding the cost of living ahead of the midterm elections in November.
This was reported by Bloomberg.
Gas prices at Ukrainian gas stations rose sharply as of September 2.
As a reminder, restaurants are preparing for rising food prices and operational disruptions this winter.
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