Just when we thought there were already enough factors contributing to the inflation crisis, we learn that there is one more—diesel prices.
That’s right, the cost of diesel is on the rise, and it will likely make consumer goods even more expensive.
According to CNN Business, it now costs an average of $4 a gallon to fill up a tank, which is the highest price in almost eight years.
The situation may not seem like a big deal at first thought. But nearly all big rigs run on that fuel. And goods in the U.S. are moved by semis.
To offset the massive gas bills, trucking companies will need to pass the price to their clients through fuel surcharges. UPS actually began giving customers a 12.75% surcharge last March, when diesel reached an average of $3.11. And the company announced that the amount will rise to 13% once the national average hits $4.10.
And nearly all other trucking companies are following suit.
When businesses like grocery stores pay those surcharges, they’ll also have to offset the extra costs. And they will likely do that by raising the price of the goods that you need to buy.
Diesel and Gas Prices Aren’t Going Down Any Time Soon
There is a very good chance that diesel prices will reach $4.10 in the coming weeks or months, too. The cost of all fuel has been steadily climbing since 2020. And the war between Russia and Ukraine will worsen the situation because Russia is one of our major oil suppliers.
Since the country is facing heavy sanctions that may affect its ability to export and traveling to Russian ports to pick up the barrels is increasingly more dangerous, the U.S. may not get any oil from Russia.
As AAA spokesperson Lori Weaver Hawkins shared with WSAZ, some of the inflation at the pump that we’ve already seen was “in part in anticipation of [the war] occurring.” And the situation will probably get worse before it gets better.
In some states, such as Hawaii and California, people are already paying more than $4 a gallon to fill passenger cars. And Oregon, Nevada, and Washington drivers are expected to pay that much soon as well.
Some stations in Los Angeles are even charging more than $6 a gallon for regular unleaded gasoline.
And just as the price of diesel is tricking down to consumers, so will the price of gas.
“Because of the higher cost of crude and tighter supplies on the world market, we are going to see prices rise at retail locations [and] restaurant,” Hawkins continued.
