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US diesel prices soar past $6 a gallon, deepening strain for hauling everyday goods

Americas 2 sources 1 country 57m ago

CHICAGO (AP) — Diesel prices in the U.S. hit yet another record on Friday, soaring past $6 a gallon on average as Washington’s war with Iran disrupts the world’s flow of fuel.The national average of nearly $6.06 is up from $5.85 last week and almost $3.71 this time last year, according to motor club AAA.Higher diesel prices mean more expensive transportation for a long list of everyday goods. That’s because diesel is used for many freight and delivery networks.

And some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.Shoppers may feel more and more sticker shock, particularly in the grocery aisle. Perishable foods, like meat and produce, face one of the most immediate strains of expensive diesel because they need to be hauled in and restocked frequently — or may be harvested using farm equipment powered by the fuel.It can take time for those costs to trickle down. But the surge in diesel prices doesn’t appear to be going away anytime soon.Prices at the pump for diesel and regular gasoline — which hit nearly $4.30 on average in the U.S.

Friday — closely follow that of crude oil. And oil has renewed its rise recently. This week, both Brent, the international standard, and U.S.

crude surpassed $100 a barrel for the first time in months as fighting between the U.S. and Iran escalated again.Political ramifications may pile up in the meantime. President Donald Trump, who has repeatedly tried to downplay the effects of the war he co-launched, said that oil prices likely won’t come down until after November’s midterm elections.What’s driving the latest jump for dieselAmerican diesel prices are now over 60% higher than they were before the U.S.

and Israel attacked Iran in late February, when the national average sat at about $3.76 per gallon per AAA. Prices quickly climbed as the cost of crude oil — the main ingredient in refined fuel like diesel, as well as gasoline — soared amid supply chain disruptions across the Middle East, notably with most tanker traffic bottlenecked in the key Strait of Hormuz.Despite some during hopes for peace earlier in the summer, oil has now renewed its climb as fighting once more escalates. And more supply disruptions are piling up.

The International Energy Agency reported Friday that Saudi oil production fell to a three-decade low last month due to Hou…

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