U.S. diesel prices rose to $5 per gallon for the first time in more than three years on Tuesday thanks to the U.S.-Iran war, CNBC reported.
The average price of diesel reached $5.04 nationwide, an increase of 34% compared to prices the day before the war began.
Diesel prices have hit the highest level since December 2022, the year of Russia’s full-scale invasion of Ukraine.
“One should really be worried about higher diesel prices,” said Andy Lipow, president of Lipow Oil Associates, in a Tuesday note. Trucking and rail companies are increasing their fuel surcharges in response, he said.
Gasoline prices, meanwhile, could hit $4 per gallon, Lipow said. Prices at the pump have surged 27% to $3.79 on average since the war started, according to AAA. Gas prices have risen to the highest level since October 2023.
