US diesel prices climb to historic record of $6.5 per gallon

Average US retail diesel prices have climbed above $6.50 a gallon for the first time, setting a historic record and extending a war-driven surge that is increasing costs across the economy, according to the American Automobile Association.

The association said the nationwide average reached $6.505 as of September 19, as prices accelerated higher in September, Caliber.Az reports, citing Bloomberg.

It noted that the prices rose by more than 87 cents so far this month and climbed on almost every day, surpassing the previous peak recorded in 2022.

Global diesel supplies have come under growing pressure amid the US-Iran war, with shipments through the strategically important Strait of Hormuz still restricted. Crude oil flows from the region have also yet to return fully to pre-war levels, limiting fuel production at refineries elsewhere.

Russia has added to the supply constraints by banning most diesel exports and could extend the restrictions through October, while Ukrainian drone attacks continue to target Russian refineries. The Moscow Oil Refinery was struck over the weekend as part of what was reported to be the largest overnight drone barrage of the year.

Although most US motorists do not use diesel-powered cars, the fuel is essential to trucks, agricultural machinery, generators, boats, trains and home-heating systems, making its price relevant to almost every part of the economy.

With the US midterm elections approaching, persistently high diesel prices could affect support for President Donald Trump’s Republican Party in agricultural states such as Iowa and in states that rely heavily on heating oil, including Maine.

There is some relief for consumers and truck drivers, however. After adjusting for inflation, diesel prices remain below their 2022 peak, according to the Washington-based think tank Institute for Progress.

By Bakhtiyar Abbasov