US diesel prices have reached a record high, surpassing $6 per gallon amid supply disruptions linked to conflicts in the Middle East and Ukraine. According to the motorist group AAA, the average diesel price climbed to $6.06 recently, exceeding the previous record of $5.82 set in 2022 following Russia’s invasion of Ukraine.
The surge in diesel costs is seen as a significant concern for American industry and agriculture, given the fuel's essential role in transportation and supply chains. Prices have now risen well above those seen during Joe Biden’s presidency, contributing to broader inflationary pressures just weeks before the US midterm elections. Consumer prices rose by 3.4% in July and remain about 28% higher than pre-pandemic levels, heightening costs for households already burdened by inflation.
Analysts attribute the spike to ongoing energy supply constraints intensified by two major geopolitical conflicts. The war led by former President Donald Trump against Iran and Ukrainian strikes on Russian refineries have curtailed global fuel flows, particularly affecting deliveries to Asia and Europe. These disruptions have in turn increased the United States’ role as a petroleum products exporter while significantly reducing domestic diesel stockpiles.
“This has been not a spike but a sustained grind higher,” said Rory Johnston, an energy analyst based in Toronto. “We don’t really have anywhere near enough diesel on the market,” he added. Robert Campbell, an analyst at Energy Aspects, described the situation as challenging, pointing out that diesel demand has little elasticity and few alternatives, complicating efforts to alleviate the shortage.
The timing of the price surge is critical as it coincides with the peak agricultural harvest season, when diesel is heavily used to power equipment for harvesting and transporting crops. Farmers in the US Corn Belt have reported severe financial strain due to rising fuel and fertilizer costs, which erode their profit margins. The period extending into November also sees increased demand for heating fuels as temperatures fall, further stressing supply.
Former President Trump has defended the elevated fuel prices as a necessary consequence of his administration’s confrontation with Iran’s nuclear programme. Speaking at a Republican convention in Dallas, he asserted that prices would decline once the “war with Iran” is resolved and suggested that food prices are already decreasing. However, public sentiment appears to be shifting, with a recent poll indicating Trump’s approval rating at just 33%, reflecting growing voter dissatisfaction over economic conditions and cost of living issues.
As the nation approaches the midterm elections, the diesel price spike presents a complex challenge for policymakers and industry stakeholders, underscoring the ongoing impact of global conflicts on the US economy.