U.S. Diesel Prices Exceed $6.50 Per Gallon for First Time Ahead of Midterm Elections

The national average retail price of diesel in the United States has surpassed $6.50 per gallon (approx. 3.8 liters) for the first time.

According to the American Automobile Association (AAA), the national average retail price for diesel was recorded at $6.505 per gallon as of the 19th (local time).

U.S. diesel prices first exceeded $6.00 per gallon in history on the 11th of this month, hitting $6.06 per gallon following news of an attack on an oil pipeline in Saudi Arabia.

Prices have surged by about 70% since February 28, when the Iran war began, rising 87 cents per gallon this month alone and repeatedly breaking the previous all-time high ($5.81) recorded in June 2022 right after the outbreak of the war in Ukraine.

Analysts attribute the rise in diesel prices to disruptions in petroleum product production at refineries worldwide as crude oil supply and demand from the Middle East through the Strait of Hormuz remains restricted, combined with a ban on diesel exports by Russian authorities following bombings on Russian refineries.

While personal vehicles in the U.S. rarely use diesel, trucks responsible for transportation, as well as agricultural machinery, ships, trains, and generators, all rely on diesel fuel.

Bloomberg forecasted that "with the midterm elections coming up in November, this rise in diesel prices could erode support for the Republican Party in agricultural regions like Iowa as well as states heavily dependent on heating oil like Maine."

Applying the cumulative inflation rate since June 2022, when diesel prices were at their highest, and converting it to present value, prices were actually higher back then in terms of real purchasing power. However, with the growth rate of real income stagnating, the pain felt by consumers could be even greater.
 
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※ Please note: This article was translated by AI and may contain errors.