GoKawiilDiesel prices in the U.S. have passed a painful new milestone for the transportation industry: $6 a gallon, a surge experts say is likely to have ripple effects for consumers as businesses pass on their higher energy costs.
The national average for a gallon of diesel rose to a record $6.05 on Friday, up more than 60% from $3.71 a year ago, according to data from AAA. Diesel is widely used in trucking and rail, affecting the cost of transporting goods around the U.S., as well as in construction and farming.
GasBuddy, which tracks changes in gas prices in real time, said diesel had already climbed past $6. In California, which has the nation's highest fuel prices, diesel was $7.98 a gallon, according to AAA.
The price of gasoline also continued its recent rapid rise, hitting a national average of $4.29 a gallon, AAA reported.
Economists said businesses have largely held off passing along higher diesel prices to consumers. But that is likely to change over the next few months if those costs remain elevated, said Thomas Ryan, a senior North American economist at Capital Economics.
Higher diesel prices are "something that households are going to have to weather at least over the remainder of this year," he told CBS News.
Diesel prices are already showing up at the wholesale level, with the Department of Labor noting on Thursday that more than a third of the jump in goods prices for producers in August was attributable to rising diesel costs, which rose 24.1% last month.
Why are diesel prices rising?
Rising diesel prices are a result of the ongoing war in Iran, which has crimped global oil supply, said Patrick De Haan, a petroleum expert at GasBuddy.
The price of Brent crude, the international standard, jumped on Thursday to $108 a barrel as fighting between the U.S. and Iran escalated.
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