Diesel prices in the United States have jumped to record levels, renewing concern about inflation and higher household costs. Latest data from GasBuddy show the national average for diesel at about $6.43 a gallon on Friday, while regular gasoline averaged $4.47 a gallon.
The spike comes as supply chains tied to oil refining remain under strain from disruptions linked to the Strait of Hormuz and the war between Russia and Ukraine.Although Brent crude and West Texas Intermediate prices were down slightly, both remained above $100 a barrel, keeping pressure on fuel markets.
Diesel is a key fuel for freight hauling and distribution, so higher prices can ripple through the economy and raise the cost of consumer goods.The National Energy Assistance Directors Association said households that use heating oil could face winter heating bills more than 31% higher than a year ago, while overall household heating costs could rise at least 8.7%.
The article also notes that U.S. inflation was 3.4% in August, far above the Federal Reserve’s 2% target, and that the Fed raised its benchmark interest rate on Wednesday for the first time in three years to help contain price increases.
Source:ABC7
