WASHINGTON, D.C. (RFD-TV) — Diesel supply disruptions are adding more pressure to already elevated fuel costs.
The International Energy Agency says disruptions in the Middle East and Russia cut diesel exports by 1.3 million barrels a day last month. Diesel refining margins have since climbed to record highs, nearing $95 a barrel.
Higher fuel costs are also driving up the price of goods and adding to inflation, as reflected in this week’s CPI and PPI reports.
Refinery production is expected to recover, but analysts warn the lost diesel supplies may not be fully replaced.
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Farm CPA Paul Neiffer said farmers and truckers should check federal updates and rules in every state where they operate before changing their fueling practices.
GasBuddy’s Patrick De Haan says details remain unclear on how the proposed shipments would work.
Energy costs contributed to the increase, with prices for final-demand goods rising 2.6 percent during the month.
With diesel averaging $6.29 per gallon and propane at $1, some farmers are considering propane-powered irrigation engines and generators to offset costs.
