Fuel crisis in the US: diesel prices reach a historic high

Retail prices for diesel fuel in the United States have, for the first time in history, surpassed the 6,50 per-gallon mark, setting a new record low. According to the American Automobile Association, the national average reached 6,505.

This is reported by Dilo, citing data from Bloomberg.

Prices rose especially quickly in September, climbing more than 87 cents since the start of the month, updating almost daily and surpassing the previous peak of 2022 from the year.

Global factors driving the fuel deficit

A reduction in global diesel supplies is linked to the war between the United States and Iran, which keeps energy shipments through the Strait of Hormuz constrained.

Meanwhile, crude oil supplies from the region have not yet returned to prewar levels, limiting operations at refineries worldwide.

The situation is further complicated by export restrictions on fuel from Russia, which may extend the ban due to systematic strikes by Ukrainian drones on processing plants. In particular, the Moscow Oil Refinery was struck during the year’s largest nighttime shelling.

Impact on the economy and politics

Although most American drivers do not use diesel for passenger vehicles, this fuel powers trucks, agricultural machinery, trains, generators, and heating systems, affecting the entire economy.

In the run-up to the midterm elections, the rapid price increases could hit the Republican Party President Donald Trump’s standing in agricultural and northern states.

Nevertheless, analysts at the Institute for Progress point out that, after adjusting for inflation, current prices remain below historical highs of 2022.

As a reminder, at the beginning of September retail diesel prices in the United States reached their highest level since mid- 2022 year, surpassing the peak levels seen at the start of the war with Iran.