- Diesel fuel is selling for $5.85 per gallon on average nationwide, AAA says – the highest price on record.
- America is likely to see its highest-ever Labor Day gas prices, the organization says, with no end in sight.
The American economy runs on diesel fuel, and diesel has never been this expensive. According to AAA, the nationwide average price of a gallon of diesel today sits at $5.85, up $0.24 in just a week.
Related: Everything You Need to Know About Fuel Economy and Gas Prices
Other fuels are expensive as well. Regular gasoline is selling at an average of $4.15 per gallon, the organization reports, peaking at $5.81 in California. The nation’s lowest price — $3.44 in Indiana — would have been alarming a year ago, when the nationwide average was $3.20.
AAA predicts that Americans will see their most expensive Labor Day weekend ever at the pump. “The national average has never been above $4 per gallon on Labor Day. The current Labor Day record is $3.82, set on Sept. 3, 2012,” the group notes.
But diesel is key to the price of most goods. The trucks and trains that deliver most products to stores run largely on diesel. Even gasoline is delivered in diesel-powered trucks.
The Associated Press notes, “More expensive fuel is increasing bills for businesses across sectors — some of which have already passed on costs to consumers in the form of added fees on online orders and packages in the mail. And shoppers may see more and more sticker shock trickle down to store shelves.”
Why Diesel Prices Are So Much Higher
- Diesel fuel is also popular outside the U.S. and priced on a global market.
- Two ongoing wars have pushed prices up.
The AP notes, “Diesel has been more expensive than gasoline for decades, and its price has risen at a faster pace during recent energy crises.” It powers global shipping and is more frequently used in passenger cars overseas.
The ongoing U.S. war in Iran has pushed crude oil prices higher. Russia’s war in Ukraine plays a role, too. Energy analyst Gregory Brew told NBC News, “Russia is the world’s second largest exporter of diesel fuel after the U.S.” Ukrainian attacks have slowed Russia’s production. “With key Russian oil refineries forced offline, the result has been a massive reduction in Eastern European diesel exports,” he explains.
The AP explains, “Brent crude, the international standard, was trading at more than $95 a barrel Friday, up from roughly $70 before the war. Prices at the pump always follow closely behind.”
Neither war appears likely to calm soon. Patrick de Haan, head of petroleum analysis for GasBuddy, cautions, “Motorists should expect continued volatility in the weeks ahead.”
