The average price of diesel in the United States rose to a record $5.85 per gallon on Friday, according to a report from KJCT. This increase, influenced by conflict in the Middle East, is impacting businesses and consumers as costs are either absorbed by companies or passed down to the public.
Agricultural producers are among those feeling the financial pressure. Joe Kelleghan, owner of Kelleghan Farms, stated that the business often ends up eating the cost because they cannot pass much of it on to the market. Some farmers utilize over 800 gallons of diesel per month for machinery.
Travelers are also reporting higher expenses. Traveling musician Willy Taylor noted that costs continue to rack up across different states. Evan Butka, who is traveling across the country, reported spending between $130 and $140 to fill up a vehicle that gets 11 miles per gallon.
Skyler McKinley, the regional director of public affairs for AAA, said that while the impact is not immediate, the rise in input costs for retailers, agricultural producers, and food trucks will eventually result in price increases for consumers. McKinley suggested that inflation may be noticed at grocery stores or through services like Amazon.
McKinley further explained that goods requiring refrigeration during shipment may see cost increases more immediately because they require energy to stay cold and must be shipped frequently to prevent expiration. In Colorado, the average price for diesel is $5.54 per gallon.
The rising cost of diesel is expected to affect the price of items transported by trucks or cargo ships.
