Diesel Hits Record, Inflation Inbound

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The price of diesel fuel hit a record Friday as the wars in Ukraine and Iran knock out refineries, triggering a global supply crunch.

Truckers in the U.S. are paying an average of $5.85 a gallon nationwide, a nearly 60% increase over the same period last year when diesel cost $3.71 a gallon. In California, diesel costs $7.70 per gallon, almost $2 a gallon more than the national average.

Diesel prices feed directly into higher inflation, said John Kilduff, partner at Again Capital. “You can do all the virtual shopping you want, it’s all going to come to your house on a truck that ran on diesel fuel so there’s no way around it,” Kilduff told CNBC’s “Morning Call.”

Diesel is the fuel that is the most embedded in the economy, more than so than gasoline prices, said Bob McNally, founder of Rapidan Energy. Diesel is used “in transportation, it’s in heating fuel, it’s in agriculture, it’s in industrial uses,” McNally told CNBC’s “Squawk on the Street” on August 17.

“It is the important macro fuel to watch,” McNally said.

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