U.S. Diesel Prices Rise to Highest Level Since April as Supply Tightens

US diesel prices rose to their highest level since April as global supply tightened, adding to inflationary pressures as conflicts in the Middle East and Ukraine continued to disrupt energy markets, Jake Lloyd-Smith reported for Bloomberg News.

Diesel fuel prices are rising in the United States as disruptions to global oil and refined-fuel supplies tighten the market.

The nationwide average retail price reached $5.688 a gallon on Tuesday, according to the American Automobile Association (AAA), just below the April peak.

It was the highest level since mid-2022. 

Diesel is widely used in freight transportation, agriculture and construction, making sharp increases in the fuel price an important cost factor for businesses and consumers.

Diesel prices have been supported by disruptions linked to conflicts in the Middle East and the Russia-Ukraine war. Russia, a major supplier, has reduced diesel exports following repeated attacks on its refineries. 

Earlier this week, President Donald Trump pressed US oil refiners to increase domestic production of diesel and gasoline during a closed-door meeting as his administration faces continuing concerns over the cost of living ahead of the November midterm elections, according to a White House official cited by Bloomberg.

Goldman Sachs has also warned about tightening diesel markets. Its analysts said that as energy prices rise, “diesel remains at the epicenter of the rally.”