Diesel prices have soared to a record $6.50 due to ongoing supply issues from the Iran conflict and other global pressures. This situation is posing significant political challenges for the Republican Party as the midterm elections approach.
Data from AAA indicates that the cost of diesel has hit $6.53, a substantial increase from $3.69 a year ago. Prior to the U.S.-Israeli strikes in late February, diesel prices were at similar levels. Businesses and consumers have raised concerns about the impact of these record prices, which in California have reached as high as $8.44.
Polls reveal a decline in confidence regarding Donald Trump’s handling of the economy. Republican lawmakers have urged him to act quickly to mitigate further repercussions. Trump attributes the diesel price hike to the Russia-Ukraine conflict, arguing that expensive fuel is a necessary price for ensuring a non-nuclear Iran. He promises that prices will decrease once the conflict concludes, citing his record on fuel affordability compared to his predecessor, Joe Biden.
President Trump has been clear for decades: Iran cannot have a nuclear weapon. He is dedicated to boosting American energy dominance, reducing costs, and increasing incomes for American families,” White House Spokeswoman Taylor Rogers stated to Newsweek regarding recent economic approval polling.
States with $6.50 Diesel Prices
As of Tuesday, 16 states, plus the nation’s capital, report diesel prices exceeding $6.50. Below are the details:
- California: $8.4387
- Washington: $7.4632
- Hawaii: $7.1360
- Indiana: $6.9138
- Michigan: $6.8813
- Oregon: $6.8720
- Nevada: $6.8433
- Illinois: $6.8276
- Ohio: $6.8174
- Alaska: $6.6627
- Wisconsin: $6.6189
- Pennsylvania: $6.6098
- Idaho: $6.5902
- Utah: $6.5642
- Maine: $6.5159
- District of Columbia: $6.5063
- New York: $6.5038
Across the rest of the country, diesel remains notably higher compared to a few months ago. Texas has the lowest per-gallon average at $5.97, which is still over $2 more than the national average before the Iran conflict began.
Trump’s Approval Amid High Diesel Prices
Newsweek, using the polling data from Civiqs, mapped Trump’s job approval in states affected by high diesel costs. In many of these states, Trump’s approval rating has dropped below the negative 25 percent net rating seen on September 21.
Inflation and fuel costs significantly influence voter preferences. Recent price hikes have created vulnerabilities for the GOP ahead of the midterm elections. A Reuters/Ipsos poll from April showed that 77 percent of voters partially blame the president for rising fuel costs, with 58 percent less likely to support midterm candidates backing his approach to the Iran conflict.
Further polling by Data for Progress in September found that 61 percent of likely voters blame the Republican Party more for gas price hikes, compared to 31 percent for Democrats. Among Independents, this margin widened to 37 points, with 52 percent preferring Democrats to tackle the issue over Republicans.
Economic Impact of Record Diesel Prices
The diesel price surge has economic repercussions, with Bank of America highlighting diesel as a crucial issue for logistics, construction, and agriculture. Since diesel hit its highest point in early September, the agriculture sector warns of potential consequences.
John Boyd from the National Black Farmers Association told Newsweek, “Farmers are losing profit margins and facing business shutdowns trying to fuel equipment during harvesting season.” The Department of Agriculture assured Newsweek that Trump recognizes the significance of diesel for American agriculture and is committed to addressing this challenge.
Experts expect the issue to persist until there’s progress in resolving the Iran conflict. However, other factors are affecting global supply, especially before the winter heating season.
Bob Yawger from Mizuho Financial Group attributes the problem to damaged refineries in the Middle East and transit troubles in the Strait of Hormuz, alongside Ukrainian drone attacks on Russian energy sites. Yawger forecasts a peace initiative soon, but notes that if unsuccessful, diesel prices may reach new heights.
Tom Kloza from Gulf Oil pointed out disruptions to Red Sea flows, predicting sustained record diesel, jet fuel, and heating oil prices that might climb further if violence escalates.