The national average retail diesel price reached $6.2694 per US gallon on 15 September, AAA’s highest recorded level. A week earlier, it was $5.9012.
Source: AAA
That represents an increase of about 6.2%. For a 100-gallon purchase, the difference is $36.82, calculated from AAA’s averages. Actual pump prices vary by location.
Source: AAA — Calculation based on its data
The supply squeeze extends beyond the United States. AFP reported that the Middle East war and Ukrainian strikes on Russian refineries were tightening fuel availability. Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said that halting attacks on Russian facilities would help, but considered missing Middle Eastern refined-product supplies the more significant problem. His assessment points to a shortage of usable fuel, even where crude remains available.
Source: AFP / Oman Observer
The U.S. Energy Information Administration explains that diesel pump prices include crude, refining, distribution and taxes. Refinery interruptions or delayed imports can reduce inventories and intensify competition for available deliveries. International demand also affects the American market. Seasonal demand for heating oil adds another factor as autumn progresses, although its eventual impact depends on supply conditions and consumption.
Source: EIA – diesel price factors
The exposure reaches much of the physical economy. Diesel powers trucks and trains moving goods, as well as much of the machinery used in farming and construction. Higher fuel expenditure can therefore affect several stages of a supply chain, from field operations to delivery to a customer.
Source: EIA – diesel use
For freight customers, the effect also depends on pricing arrangements. EIA notes that many carriers apply fuel surcharges, with individual companies setting their own calculation methods. A national pump-price increase therefore does not translate into an identical rise in every freight invoice. The surcharge formula and the applicable price reference determine how the change is passed through.
Source: EIA – fuel surcharges
