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Supply Chain Graphic of the Week: The Still Soaring Price of Diesel Fuel

 

 

Premium for Diesel over Gasoline at All-Time High


Dec. 1,  2022

 

 

Prices at the pump for regular gasonline have dropped signficantly in recent months. But for the diesel fuel that powers most of the supply chain.

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That even as the price of oil from which diesel is made has fallen steeply, as seen in the graphic below:

 

 

Source: Wall Street Journal

 

While the price of gasoline is up about 14% this year, diesel has climbed about 50%, to $5.35 a gallon, according to AAA.

 

The recent gains for diesel increased the gap between the two to an all-time high of $1.61. A year ago, it was just 23 cents.

 

What's going on? The Ukraine war is apparently one factor, as is refining capacity. For example, Russia‚Äôs exports of diesel have been more impact than those of its crude oil.

 

All this added cost to transport goods is a factor in still high inflation.

 

The large premium will shrink eventually - but not any time soon.

 

Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.

 

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