PoliticsPoliticsNational Politics

Actions

Spiking diesel costs could make everything from shipping to groceries more expensive

Most cars on the road don’t fill up with diesel, but it’s the lifeblood of some major industries.
Spiking diesel costs could make everything from shipping to groceries more expensive
Iran US Oil
Posted

The pain of rising fuel costs is pinching American wallets, particularly when it comes to diesel.

The average price for a gallon of regular gas on Tuesday was $3.79, up 30% from a month ago. And a gallon of diesel now costs more than $5, up nearly 40 percent.

Most cars on the road don’t fill up with diesel, but it’s the lifeblood of some major industries.

"It's really the commercial sector. So, any business that is using transportation either directly or indirectly," said Thomas Weinandy, Principal Research Economist at Upside. "Really any business that is receiving deliveries, they're having to pay diesel costs in some way."

Farmers depend on it too.

“so much of our equipment runs off of diesel. Whether it be a tractor, whether it be the trucks that we use often times to pull our equipment with," one said.

RELATED NEWS | Oil market sees its worst disruption ever as Iran war threatens supply

This means increased fuel costs could trickle down to other places, like the grocery store.

Experts say if diesel prices remain elevated, consumers could begin to feel the impact this Spring.

"If the price spikes that we're seeing right now last longer than roughly another month, then we'll start seeing that translate into the shelf price that consumers are paying," said Joe Adamski, Managing Director for ProcureAbility.

Sunset over the State Capitol.jpeg

U.S Capitol CNN 061419

White House