Diesel prices in the United States have continuously hit all-time highs in September. As of Sept. 10, diesel costs $5.98 on average, $2.31 more than when the U.S. and Israel began their war on Iran in February, reports Tik Root for Grist.
The surge in diesel prices comes just before November's midterm elections, and as domestic inventories are at their lowest since 1982.
Farmers and truckers who use more diesel in autumnal harvest seasons will be significantly impacted. Though most Americans don’t buy diesel, they still pay for it. The cost of diesel used to cultivate crops and transport those harvests to market is linked to the grocery prices one sees at the store.
“Early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins,” David Ortega, a professor of food economics and policy at Michigan State University, told the Associated Press. “But as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.”
This year, the Strait of Hormuz — through which 10% of imported diesel travels — was closed by Iran, which caused prices to surge. The last time gas prices soared this high was when Russia invaded Ukraine in 2022, which also shut Russia out of the global diesel market.
Apart from higher prices for farmers and at grocery stores, a challenging winter is likely. Heating oil is essentially diesel, Root writes, and “the millions of U.S. households that still rely on it can expect unprecedented bills.”
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