Diesel fuel hit an all-time U.S. high of $6.31 per gallon this week, while EU diesel prices climbed to a record €2.159 per liter (US$2.49/liter; roughly US$9.43 per gallon), as refining shortages tied to the Iran conflict ripple through global freight.
U.S. diesel prices reached $6.31 per gallon Wednesday, with some California pumps already topping $8, according to Norfolk Southern’s chief commercial officer at a Morgan Stanley conference. David Russell, global head of market strategy at TradeStation Group, called diesel “the economy’s single most universal tangible input,” warning that freight haulers are feeling the pain first, with consumers close behind. Jack Buffington, a University of Denver supply chain professor, attributes the spike not to crude prices but to lost refining capacity in Russia and the Middle East, estimating roughly 20% of global capacity is currently offline.
Across the Atlantic, the European Commission’s Weekly Oil Bulletin put the EU-wide diesel average at €2.159 per liter (US$2.49) as of September 14 — the highest since its records began in 2005 — pushing eurozone energy inflation to 14.3% in August. ECB experts told Euronews that refining margins, not crude costs alone, are driving the increase, with diesel margins not expected to peak until October. Filling a 50-liter tank with diesel now costs about €108 (US$125) EU-wide, ranging from €1.21 (US$1.40) per liter in Malta to €2.51 (US$2.90) in Finland.
IAM Member Impact: Members with U.S. or European trucking exposure are vulnerable to margin erosion. They should revisit fuel elements of their costs now, and budget for elevated diesel-driven surcharges through at least the fourth quarter with limited near-term relief likely.