The average price of diesel fuel across the United States has reached a new peak of $5.85 per gallon, according to data cited by LAist. This figure exceeds the previous record of $5.81 set in June 2022, shortly after Russia began its invasion of Ukraine.

Analysts attribute the surge to multiple supply constraints that emerged after the conflict involving Iran began in late February. Limits on shipments through the Strait of Hormuz, combined with reduced exports from Asian refineries, have tightened global diesel availability.

Ukraine's strikes on Russian oil facilities have idled several diesel refineries, prompting Russia to cut its own exports and begin importing fuel from nations including India, Kazakhstan and Belarus. Refiners in the United States have also shifted output toward higher-priced jet fuel, further reducing diesel production.

Patrick De Haan, a petroleum analyst at GasBuddy, noted that the elevated costs will affect the movement of goods because diesel powers trains, tractors and trucks. He stated that higher diesel expenses mean "There's going to be a trickle down."

Jaime Brito, head of Dow Jones Energy, described diesel as essential to the economy, explaining that refiners responded to price signals by increasing jet fuel output at the expense of diesel supply. Dale Hemminger, who operates a dairy and cabbage farm in New York, reported that his fuel expenses for a 10,000-gallon tank rose from about $25,000 last year to nearly $45,000 this year.

Roughly 90 percent of the nation's school buses run on diesel, and many farm machines depend on the fuel as well. Seasonal demand for heating oil, which is chemically similar to diesel, is expected to keep prices elevated through the winter months.

Broader inflation stood at 3.4 percent over the past year, yet energy costs have risen more sharply and are placing additional strain on household budgets, particularly for lower-income families, according to analysis from the Federal Reserve Bank of New York.

This report is based on coverage by LAist: https://laist.com/news/transportation/the-price-of-diesel-hits-a-record-high