Diesel prices hit historic high; energy experts explain how America got here as inflation fears rise

The cost of diesel has reached an all-time high as the strain of war roils markets and decades of poor policy choices come due, two energy experts told Heartlander News.

Diesel prices hit a historic peak of $5.85 per gallon on Friday and climbed to $5.90 on Monday, according to AAA data. The average cost of diesel was $3.70 at the same time last year, AAA said, representing a nearly 60% increase.

Additionally, oil costs topped $100 a barrel Wednesday morning for the first time since July 2024 as gasoline prices also rose.

Energy experts explained to Heartlander News that there are several factors driving the price spike, with one pinning the costs on the Russia-Ukraine war and another arguing that refinery closures and decades of poor Democratic policy choices have led America to a “predictable” place.

“The severe shortage of diesel stocks globally has caused prices to skyrocket,” said David Blackmon, an energy and policy writer who spent 40 years in the oil and gas business. “This is mostly due to the successful drone campaign by Ukraine which has targeted most Russian refining operations in recent months.”

Blackmon noted that while Russia had previously been among the world’s biggest diesel exporters, it now imports diesel from India. When asked about a national refinery shortage, Blackmon said it is a component of the rising costs, though pressure from the Russia-Ukraine war on global supply remains the preeminent factor.

“There’s no question the U.S. is short of overall refining capacity, but solving that issue would take a decade. Ending these wars is the real quick fix that’s actually available,” he said.

Energy Secretary Chris Wright also assigned blame for climbing diesel prices to the Ukrainian destruction of Russian refineries when pressed Sunday on CNN.

Jason Isaac, CEO of the American Energy Institute, told Heartlander News that diesel’s record high should not come as a shock.

“Diesel hitting an all-time high is the predictable result of choices made over decades, not a surprise to anyone who follows energy policy,” he said. “We’ve misallocated resources into wind and solar for years, leaving our electric grid less reliable and more expensive, while regulatory overreach and lawfare against energy companies in Democrat-run states and cities has kept America from building a single new refinery in decades.”

Isaac named California as a prime example and a cautionary tale of how draconian energy policies impact refineries.

“Pile enough regulation onto a refinery and it closes, which is exactly what’s been happening,” he said. Two major refineries recently closed in California after stringent policies squeezed energy facilities for years – and now the state is pivoting to more reliance on foreign fuel imports.

“The refineries still standing are running flat out, including sending diesel to Western Europe to replace what Russia used to supply. Add in Iran and China’s role in global energy markets, and this is years of policy converging at once, not one single cause,” Isaac said.

Truckers reported paying nearly $1,000 to fill up their tanks and said the fuel costs were eating into their profits. “We’re not really making any money,” one told Fox 4 Dallas. “Everything is going into the fuel tank.”

Market analysts reacted to the spike with fears of inflation. 

One called high diesel prices “a tax on everything,” and The Kobeissi Letter noted, “Something has to give, or inflation is set to get much worse.”

(Image credit: Unsplash, themrjaxson)