Diesel prices are surging to the highest level on record as the global fuel-supply shortage hits American truckers, farmers and users in just about every sector of the U.S. economy.
Retail diesel averaged $5.18 a gallon on Thursday, the highest in records going back to 2005, according to auto club AAA. Prices jumped in recent days amid record futures contracts and decades-low stockpiles, further squeezing consumers dealing with decades-high inflation. Russia’s invasion of Ukraine has tightened global supplies of the fuel and led to fierce competition for diesel produced on the U.S. Gulf Coast.
Expensive diesel could deal a blow to the trucking sector, which consumes around 70% of all diesel used in the country and serves as a barometer of the U.S. economy, according to trucking association ATA. Diesel is also used in farming equipment currently powering the largest planting season for corn and soybeans since 2017.