US Diesel Sets All-Time High as War Fuel Bill Hits $97.5 Billion

US diesel prices set an all-time high of $5.820 per gallon on Thursday, according to live GasBuddy data. The previous record of $5.819 dated back to June 17, 2022. The record arrives as US distillate inventories are at their lowest seasonal level ever. Diesel Tops 2022 All-Time High He recently said 2026 is on track to become the most expensive year for diesel in US history. The price surge arrives amid thin stockpiles. EIA data showed that distillate stocks were about 14% below the five-year average in the week ending August 28, 2026. The stocks averaged their weakest August levels this time of the year since 1982. In addition, East Coast inventories have fallen to a record low. Refiners are already running hard, with utilization at 98% for the week ending August 28. Diesel crack spreads topped $100 per barrel, according to Reuters. This is especially problematic as September marks the start of the fuels peak-demand period. The diesel market is facing a major shortage, The Kobeissi Letter said. Fuel Costs Feed the Inflation Debate Researchers at Brown University have put a dollar figure on the squeeze. The Iran War Energy Cost Tracker estimates a consumer burden of $97.5 billion since fighting began on February 28. That works out to $743.99 per US household. Diesel accounts for $44.14 billion of the total, with the national average up 57.6% from a pre-war $3.670. Diesel has traded above $5 per gallon since July 15. Harvest season and winter heating demand still lie ahead. Analysts at Rystad Energy expect higher diesel costs to be passed on to consumers. Think of the groceries that get shipped around the nation, and fruits and vegetables that come from California and move by truck or rail. Its inflationary, Susan Bell, senior vice president of downstream research at Rystad Energy, said. Energy shocks have already lifted European gas prices and eurozone inflation this year. The next EIA inventory report, due September 10, will show whether refiners can rebuild stocks before demand rises. Read the article at BeInCrypto