Diesel hits $6 a gallon for the first time, fueling more inflation
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The national average price of a gallon of diesel jumped over $6 for the first time ever, AAA said on Friday.
Why it matters: The fuel that runs the economy is getting more expensive by the day, costing businesses and consumers alike billions of dollars.
- While the $6 threshold is more psychological than anything else, it points to months of continued pain for drivers, shippers and shoppers.
Driving the news: At $6.0556 a gallon, diesel is about 14% more expensive than it was a month ago and over 60% more than a year ago.
- That is starting to show up in other prices, as has long been feared; inflation data out Thursday showed sharp spikes in transportation and warehousing costs, for example.
Stunning stat: Brown University estimates higher diesel prices have cost U.S. consumers more than $46 billion since the war began.
- About 20% of that is in Texas and California alone.
The intrigue: The White House's position is that fuel prices will come down after the midterms as the war with Iran winds down and oil supplies improve.
- But the Department of Energy sharply raised its 2027 diesel price forecast this week, acknowledging a painful higher-for-longer scenario.
The bottom line: With diesel at $6, inflation looks like it's here to stay for a while.
Ben Geman contributed reporting.
