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Diesel Surge Threatens Prices Across U.S. Supply Chain

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Diesel prices have surged faster than gasoline since the February U.S.–Israeli conflict with Iran, climbing to $5.38 a gallon, a near‑45 % jump. The spike is already biting small businesses like Maui Brewing in Kihei, Hawaii, where owner Garrett Marrero faces higher freight surcharges on barley and hops shipments. Higher fuel costs are set to ripple through the broader economy.

Trucking firms feel the pressure first. Bonelli Logistics in Southern California reports weekly diesel bills near $2,000 per eight‑truck fleet, forcing the company to add emergency surcharges just to break even. The U.S. Postal Service announced an 8 % temporary package surcharge effective April 26, while independent drivers lack the pricing power to offset rising fuel expenses, according to the Owner‑Operator Independent Drivers Association.

Economists warn that the diesel surge will soon translate into higher grocery bills, as tractors, combines and long‑haul trucks all depend on the fuel. Bernard Yaros of Oxford Economics notes food inflation typically follows diesel spikes by three months, potentially matching the pandemic‑era surge. With household budgets already strained, the added cost pressure is now a tangible reality for consumers.