Diesel prices crossed $6 a gallon nationally for the first time in history on Thursday, prompting former Rep. Marjorie Taylor Greene to call the milestone “unreal” as ongoing conflicts in Iran and between Russia and Ukraine drive prices higher.
A Record That Reaches Every Household
Diesel powers most of the trucks, trains, farm equipment, and construction machinery that move goods across the country, so rising prices filter into the cost of groceries, household items, and deliveries, even for people who never buy diesel themselves, GasBuddy said in a statement.
Greene reacted to the milestone on X, calling it “unreal,” adding that everything America buys is delivered by diesel.
“End the wars,” she said.
At $6 a gallon, diesel is up roughly $2.30 from a year ago, when the national average sat near $3.70.
AAA’s own data shows diesel at $5.9773 a gallon as of Thursday, its highest recorded average, up from $5.7832 a week earlier and $3.7060 a year ago.
The national average for regular gasoline stood at $4.2770, up from $3.1938 a year ago.
A Warning for the Holiday Season
Patrick De Haan, GasBuddy’s head of petroleum analysis, called it a rare and painful milestone for the economy, one that could feed inflation across the supply chain.
He said Americans should brace for a pricier holiday season, with diesel prices likely to keep climbing as geopolitical tensions persist.
The Bureau of Labor Statistics’ August Producer Price Index showed that diesel prices jumped 24.1% that month, one of the largest contributors to the overall increase in prices for final demand goods. Overall producer prices rose 5.4% year-over-year in August, up from 4.8% in July.
De Haan said diesel prices are also being squeezed by a global refining crunch, as Ukrainian drone strikes on Russian energy infrastructure have sharply curtailed Russia’s ability to refine and export fuel, CBS News reported.
Trump Has Promised the Opposite Trend
President Donald Trump on Monday said that oil prices will fall “precipitously” once the U.S. wins its war with Iran, predicting gas will first drop to $3 a gallon before eventually falling below $2.
He also said those prices will fall only after the midterm elections in November.
At the time of writing, Brent Crude traded at 107.652, up 0.02% a barrel, and WTI Crude was up 0.10% at $102.578 per barrel.
Price Action: On Thursday, United States Brent Oil Fund (NYSE: BNO) was up 6.42% at $63.13 and ProShares Ultra Bloomberg Crude Oil (NYSE: UCO) climbed 4% to $52.23 and gained further 1.09% in extended trading, according to Benzinga Pro.
United States Oil Fund (NYSE: USO) rose 5.61% to $158.38.
Benzinga edge rankings indicate United States Oil Fund has a Momentum score in the 93rd percentile.
See More:
Top Momentum Stocks
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Shutterstock/Consolidated News Photos
