There’s already been two big price spikes this year due to the cost of diesel. Just wait till the next one hits
Biden overlooked diesel fuel inflation. Why that’s extra bad for the economy.
For the last six months, President Biden and his top advisors have obsessed over gasoline prices, for obvious reasons. That’s because no single price rattles consumers as much as the cost of gas, which crept up to a new record high of $5 per gallon in June. So it comes as no surprise that soaring gas prices corresponded directly with Biden’s sinking approval rating.
Since then, gas prices have fallen by about $1.10 per gallon. Biden may have helped a little by releasing oil from the US strategic reserve. Market forces, tough, have been a bigger factor. Still, that hasn’t stopped Biden from touting the drop in prices and claiming he deserves the credit.
But Biden has largely ignored another important type of fuel: diesel fuel, which is critical for the production and transportation of many everyday products. There’s a reason for Biden’s silence: Diesel prices remain uncomfortably high, and they’re contributing to food inflation and other consumer pain points. Around the same time gas hit $5, diesel hit a record high of $5.81 per gallon. Gas prices are now 22% below their peak, but diesel is just 8% lower. On a year-over-year basis, gas prices are up 15% while diesel is up 43%.
That plays a huge part in all your food and clothes and stuff, because diesel trucks deliver those goods. Autos are up $400-$1400 this year, much of it due to the price of diesel.
The American Farm Bureau Federation sent a letter to Biden on November 4 drawing attention to the problem. “Our nation’s food supply is driven by diesel,” Farm Bureau president Zippy Duvall wrote. “High diesel prices are severely impacting our farmers and ranchers, causing increased costs to consumers, and adding to food insecurity.” While the pace of gasoline inflation has moderated substantially in recent months, food inflation has generally gotten worse, and now stands at 13% year-over-year. Wages are only rising by around 5%, so it takes a bigger chunk of the family paycheck to fill the refrigerator.
The US energy market is complex and there’s no single cause for higher diesel prices. Part of the explanation is a 4% reduction in diesel refining capacity that began in 2020, when oil prices crashed and many producers lost money. There’s less refining capacity for gasoline, too, which is why the “spread” between the cost of oil and the cost of refined products has been higher than normal for most of this year—there’s a bottleneck in the conversion of crude oil into consumer products, which tends to push the cost of finished products up.
We’re potentially looking at not just low levels of diesel, but, a big shortage. Which will drive prices up, and then food and goods prices will go up. Biden’s choices are limited: it’s something that should have been addressed long ago, just like with the continuing baby formula shortage. He’s not worried, because he’s rich, and the taxpayer is picking up the tab for most of his food.
Let’s not overlook the fact that diesel is essentially the same as heating oil, a rather essential commodity up north for the next several months. Would you rather freeze or starve?
As an aside, jet fuel is part of this distillation level and will probably be affected as well. Planning any trips by air?
More good news!
https://www.foxbusiness.com/politics/biden-pace-1-trillion-budget-deficit-2023-2-7-billion-new-debt-day
#LGBFJB
Bwaha! Lolgf
The shortage of diesel and all the miseries coming from it part of the plan. The left is in power. The left HATES all of us. The left will continue to destroy EVERYTHING because they HATE all of us. Pedo Joe has nothing to do with what’s happening. He’s nothing but a meat sock puppet. The people responsible for all our misery were NOT elected, are NOT accountable and with rare exception anonymous.
Fossil fuel prices are skyrocketing!!
Again
Trump’s friends the Saudis and Russians set the price you must pay (even on domestically drilled oil)
Fuel costs ?
Well let’s say that you are hauling 40000# of tomatoes from LA to NYC
2800 miles you have a fairly new tractor getting 7mpg
You use 400 gal@ $5 per gallon a total cost of $2000.
3 years ago under Trump it only cost $2.50 for a total fuel cost of $1000.
Your 40000# haul of tomatoes at the higher fuel price now has raised the cost how much per pound more to the consumer?
1/40th.
Now (use your calculator if born after 1970) express that 1/40th of a dollar in decimal form
Extra points for determining if the fuel cost is significant
Dana?
Thanks for showing you can’t do math. (I know, you’re a liberals, so it was assumed from the start.)
You have failed to show how a doubling of fuel costs equals an increase of 1/40th. You also failed to take into account the general ugly inflation rate.
Please show your work, if you can.
John,
You always fail to consider cumulative cost.
Dan
Your fuel costs are giving the fossil fuel companies and your friends the Arab sheiks record high revenue. I am unsure why you would think that benefits the “left”
Could you explain?
Carbon Offset-do you have proof the Saudis and Russians set the price of oil? The US produces about 18.7 million bpd, while the Saudis and Russia combined produce just over what the US produces at about 20 million bpd. They obviously have some bearing on it, but those 2 set the price for the world? Evidence, please
Thanks, Carbon boy..
What’s with the “your fuel costs”? WE ARE NOT IN POWER, you are. They are your fuel costs created by your energy policies and your political embargos. They are the result of pedo joe’s poor energy decisions and his snubbing of the Saudis, the debasing of the Russians and his unyielding loyalty to the professional comic and Nazi lover who runs Ukraine rather than Trump’s “America first” philosophy in energy (and everything else).
Why do you leftists hate America so much?
And don’t forget 10% for The Big Guy!
Without carbon credits and Trump, Johnny wouldn’t have anything to write about