US Diesel Hits Record $6.53 Amid Export Surge
Diesel prices rose 74% year-over-year to a record $6.53, driven by record exports and tight supply.
Key points
- US diesel prices hit a record $6.53 per gallon, up 74% year-over-year due to export surges.
- California diesel prices reached $8.25, significantly higher than the national average.
- Gasoline and jet fuel prices also spiked, with jet fuel near record highs.
The average US diesel price hit a record $6.53 per gallon. This 74% year-over-year spike stems from record export volumes.
California drivers face prices of $8.25 per gallon. Wolf Street notes that these levels trigger significant inflation concerns.
Record Exports Drive Price Increases
US refiners exported a record 1.74 million barrels daily. This global shortage allows domestic producers to capture higher margins.
Diesel crack spreads reached record highs alongside crude oil costs. These margins directly inflate the final retail price for consumers.
Inflation Impact Expands Beyond Trucks
Diesel costs feed into shipping and airline fares. Businesses pass these input costs to consumers via higher service prices.
The GDP price deflator already showed 6.4% annualized growth. Current fuel trends suggest Q3 inflation data will worsen further.
Gasoline and Jet Fuel Also Rise
Gasoline prices reached $4.61 per gallon, nearing May peaks. Jet fuel hit $4.418 per gallon, just below all-time highs.
Airlines hedge fuel costs, but spot prices remain volatile. Delta operates its own refinery to mitigate these specific risks.
