Local communities have expressed frustration over rising diesel prices as fuel costs hover near record highs. Prices have shot up in recent weeks due to the ongoing closure of the Strait of Hormuz and repeated attacks on oil refineries as part of Russia’s full-scale invasion of Ukraine. The rise has prompted some Republicans to call for a ban on diesel exports ahead of the forthcoming midterm elections.
Prices Rising
The average price of diesel reached a record high of $6.53 per gallon on Tuesday, 22nd September, and stayed around $6.50 over the weekend.
The figure is almost double what it was a year ago, when a gallon of diesel cost $3.69, according to the American Automobile Association.
Diesel prices typically rise after summer because of a seasonal surge in heating oil demand.
Agricultural activity also increases demand, while refineries typically use Fall to conduct maintenance ahead of the annual switch to winter-grade diesel.
Combined with ongoing conflicts in eastern Europe and the Middle East, a growing shortage is causing problems across the United States.
Different Dilemmas
CBS News reported that one Georgia food bank expects another $100,000 in costs due to the diesel price increase, with money that would otherwise go to feeding families now going to fuel.
“We pay for the food that is coming in because the people who provide it charge us for it, and then we have to run our trucks with fuel to take it out to our neighbors,” Kenneth Hill, supply chain officer at the Atlanta Community Food Bank, told CBS News Atlanta. “So there’s a double impact on fuel when it comes to receiving and distributing that food.”
With the food bank forced to absorb the costs, the extra money spent on diesel amounts to about 122,000 meals, according to Hill.
Other industries are also struggling. Andrew Coppin, CEO of ranching manufacturer Ranchbot, said: “Outside of labor, diesel is the single biggest input into a lot of farming operations, so it’s a very material increase in the cost of operations.
If it’s an F-250, a Ram 2500 or a Silverado, we’re talking 1-ton diesel trucks, and on a good day they are getting 12 miles to a gallon.”
Farmers are also feeling the strain, with Marty Gray, owner of Gray Farms in Watseka, IL, telling CBS News Chicago that he was constantly thinking about diesel. “We’re just trying to decide.
Do we fill up the tanks now, or do we need to wait a little bit? Will it get better, or will it get worse?” he said.
War’s Impact
Much of the price rise stems from the ongoing conflict in the Middle East.
Iran has effectively closed the Strait of Hormuz – a vital international waterway for oil exporters such as Bahrain, Kuwait and Qatar – prompting prices to rise as vessels remain anchored in the Persian Gulf.
Furthermore, a renewed offensive by Houthi rebels in Yemen earlier this month led to the seizure of the Bab al-Mandeb Strait – another narrow body of water predominantly used by Saudi Arabia for oil exports.
Russia’s full-scale invasion of Ukraine has also prompted worldwide shortages. A report from the International Energy Agency (IEA) said 27 of Russia’s 32 major oil refineries have been attacked since the conflict began, some of which have been struck 15 times.
As a result, output of gasoline has dropped by 20% compared to 2024, while diesel production is down by almost one-third.
Export Ban Calls Grow
A growing number of Republican candidates for November’s midterm elections have called for President Donald Trump to implement a ban on diesel exports, thus keeping supply within the nation.
These calls, which have predominantly come from those in battleground states, are reportedly being explored by the White House, with a 90-day export ban under consideration.
Last week, Trump signaled support for an export ban, although U.S. Energy Secretary Chris Wright doubted whether an embargo would reduce prices the following day.
“The blunt tool of banning diesel exports definitely doesn’t work,” Wright said last Wednesday. “If you can’t export the diesel that comes out of our refineries, you run out of places to store it, and you have to reduce U.S. refining, which would put upward pressure on gasoline prices and jet fuel prices.”
About the Author: Shay Bottomley
Shay Bottomley is a British journalist. He has written for the Western Standard, Business Insider, Maidenhead Advertiser, Slough Express, Windsor Express, Berkshire Live and Southend Echo.
