US diesel exceeds $4 per gallon for first times in two years

Average US retail diesel prices surpassed $4 a gallon for the first time in nearly two years on Wednesday and are set to rise further later in the week as the US-Israel conflict with Iran dragged on.

According to data from the American Automobile Association (AAA), the average price of diesel rose by 14.7 cents to $4.04 per gallon, marking the largest single-day increase since March 2022.

Patrick de Haan, an analyst at GasBuddy, indicated that the average could reach levels between $4.25 and $4.45 per gallon in the coming days, depending on developments on the ground.

Why is this significant? Diesel is the primary fuel used in manufacturing and shipping, and its rising price threatens to trigger sudden price increases across the board for all consumer goods.