Diesel Prices Soar

 Last Wednesday in Rockford, MN the Kwik Trip was selling diesel fuel for $4.89 per gallon.  On Friday afternoon they raised the price to $5.49 per gallon.  That’s about a 12% increase in one fell swoop.  Did you paycheck go up enough to cover that?  How about the $5 foot longs at Subway now costing $11?  Did your paycheck go up enough to cover that?  How about eggs selling at Kwik Trip just 6 months ago for $1 per dozen but now costing $3?  Did you get enough of a pay raise to cover a 200% increase in egg prices? 

It’s very possible that the financial collapse has started.  Prices may never “normalize” again.  Despite what we are being told that “inflation is only transitory and will go away as soon as supply chains are normalized”, they could be lying because they have nothing better to say. 

Remember that every single thing you eat, wear or put in your house, is delivered to you or your local store by a truck burning diesel fuel.  So if diesel fuel is up 100% in the past few years we can expect the price of everything to continue to soar.

The perfect storm continues.

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Along with the pain of higher prices in general at the pump, truck drivers are dealing with the fact that diesel has risen beyond increases in crude and gasoline. 

The numbers are stark on how much diesel has risen relative to other benchmark oil prices in recent weeks. According to the Department of Energy’s Energy Information Administration (EIA), retail gasoline is up 26% from the start of the year — but diesel is up 42.8%. 

While it’s easy to blame the Russia-Ukraine war, given the enormous role of Russia as a supplier of diesel, the reality is that the price of diesel compared to crude and gasoline began to increase well before Russia’s invasion. 

The price that truckers pay at the pump always is determined primarily by the price of crude. But if the relationship between crude and diesel goes through structural changes that tack on another 10 to 15 cents a gallon to the spread, those gains are going to impact the retail price of diesel even if crude sits perfectly still.

https://www.freightwaves.com/news/diesel-prices-soaring-beyond-crude-gasoline-and-likely-to-stay-that-way