US diesel prices surpass $6.50 a gallon, impacting economy
Political economy professor Hassan Obeid says record diesel prices are affecting US consumers, farmers, and the broader economy.
Key Takeaways
AIPolitical economy professor Hassan Obeid said that diesel prices in the United States have exceeded $6.50 per gallon for the first time.
Speaking in an interview with Al Arabiya FM, Obeid explained that before the Russia-Ukraine war, a gallon of diesel cost $2. The price then rose to $3.75 before the US conflict with Iran, reaching a historic high that is affecting farmers, transportation, shipping, and ultimately American consumers.
He added that the surge in diesel prices is impacting the US economy, and that higher interest rates have contributed to this increase because high storage costs force companies to borrow more. Obeid also noted that Ukraine's targeting of Russian diesel stations was preceded by a decision to halt diesel exports.
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