Not Just Trucks: How Diesel Prices Stoke Inflation

May 27, 2022

I’ve posted a lot about the price of natural gas, which has been jacked up following the Covid recovery and the Ukraine invasion – but another big driver of the price pressures people are feeling is diesel. Again, correct me if I’m wrong, but a commodity price set globally, not locally.

One more example of why continued reliance on globally priced fossil fuels is a mistake, but also an example of the parts of the economy that will be most difficult to decarbonize. For shipping, there are many examples now of all-electric ferries, which have relatively short runs and can recharge frequently. Replacement fuels for things like barges on the Mississippi, or ocean going freighters, are harder to make out.

Hydrogen fuel cells comes to mind as a possibility, but that suggests a pretty long turnover time.

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One Response to “Not Just Trucks: How Diesel Prices Stoke Inflation”

  1. jimbills Says:

    ” Again, correct me if I’m wrong, but a commodity price set globally, not locally.”

    Largely yes, that’s correct, but locality affects it as well. If the supply is high in a local area, it’s less expensive in that area. Also, in general, refined products cost less the closer they are to the refiner.

    In Russia, diesel prices are lower than they were before the war:
    https://www.globalpetrolprices.com/Russia/diesel_prices/

    On the global basis, though, if the consumer vehicle fleet has a significant enough percentage replaced by EVs, total demand for refined gas will drop, and that would also cause diesel prices to drop. Hydrogen, which would take far longer to implement on mass scale than EVs, wouldn’t be much of a factor in that scenario.


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