New Record Set for Diesel Prices in Michigan
Diesel prices in Michigan have reached a record average of $6 per gallon, surpassing the previous high from the 2022 energy crisis. The surge is driven by tight refining capacity, strong freight demand, and global supply disruptions linked to the Iran war and Strait of Hormuz closures. Higher diesel costs are increasing expenses for transportation, agriculture, and manufacturing, with potential ripple effects on inflation and consumer prices.
- ▪Diesel prices in Michigan hit a record $6 per gallon, exceeding the 2022 peak.
- ▪Patrick De Haan of GasBuddy attributed the rise to tight refining capacity, strong freight demand, and global supply disruptions.
- ▪Diesel inventories are well below seasonal norms, making the market vulnerable to further shocks.
- ▪The Strait of Hormuz, a critical oil transit point, has seen repeated disruptions due to the Iran war.
- ▪Farmers in Michigan face 15 to 25 percent higher operating costs, primarily due to fuel and fertilizer expenses.
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By Hollie SilvermanDeputy Weekend EditorShareNewsweek is a Trust Project memberSee more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.Diesel prices in Michigan surged to a record average of $6 per gallon on Sunday, Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on X.The new price has eclipsed the previous high set during the 2022 energy crunch and intensifies economic pressure on truckers, farmers, and manufacturers.
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