Record diesel prices threaten broad inflation as supply chains feel the squeeze

Diesel prices hit a record around $6.31 per gallon, signaling higher transport costs that will ripple through the economy by pushing up prices for groceries, goods, and services. Retailers are absorbing much of the cost or passing it on via surcharges, freight costs hit truckers—especially small operators—and large carriers or refiners with favorable margins could benefit. The duration and extent of the impact depend on refinery capacity and geopolitical factors, with winter heating oil also at risk of rising costs.