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Diesel prices surpass $6 average for first time in history

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The price of diesel fuel on a pump at a corporate filling station in San Diego, California, May 18.  Reuters-Yonhap

The price of diesel fuel on a pump at a corporate filling station in San Diego, California, May 18. Reuters-Yonhap

The average price of diesel jumped over the $6 mark for the first time ever on Friday, setting the stage for broad price hikes in the United States.

The national average hit $6.06 per gallon, surpassing the high watermark of $5.82 set in June 2022, AAA reported. The global supply chain's reliance on diesel fuel means rising prices are likely to raise costs in many other areas, including at the grocery store.

Diesel prices are up by 55 percent since the United States and Israel launched strikes on Iran in February. It is on pace to record the largest annual percentage increase of all time this year.

The war in Iran, coupled with the war between Russia and Ukraine, has created the global fuel market to lose about 8 percent of its diesel supply.

"Refiners have already been maximizing the production of diesel," Andy Lipow, president of Lipow Oil Associates, told CNN. "We simply can't get any more diesel out of the system."

Meanwhile, the price of gasoline has risen by 40 percent, reaching $4.29 per gallon for regular grade gas on Friday. It is the highest price that gasoline has ever been this late in the year as gas prices tend to peak in the summer months.

California is pacing all states with the highest diesel prices, up to an average of $7.98 compared to $5.16 a year ago.

Crude oil prices are also on the rise with the war in Iran again intensifying. Futures on Brent crude oil, the international benchmark, were priced at about $104 per barrel on Friday morning. West Texas Intermediate crude, the U.S. benchmark, was nearing the $100 mark at about $99.07.

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