Why You Need to Pay Attention to the Rising Cost of Diesel

 

Welcome to 2023, a year of change. Given last year’s waves of inflation, many are hopeful this year will bring in lower prices and higher purchasing parity. However, while some markets in the U.S. are trending toward recovery, others, like grocery prices, are still on the rise. What might be happening behind the scenes that is extrapolating these rising costs?

Inflation, or shrinkflation in many cases around the U.S., has a multitude of causes, not least one following a global pandemic. For one, prices at the pump are shifting – but not directly for consumers, rather, for the consumer-driven industries, like grocery shopping. The cost of diesel is rising.

There is a lack of attention on the loss of refining capacity for diesel, which, combined with governmental policies that aren’t doing enough, doesn’t bode well for the summer season. Tim Snyder, Economist with Matador Economics shares his thoughts on the matter.

Tim’s Thoughts:

“Good afternoon and welcome to 2023. It’s an old saying that goes, what a difference a day makes. And I’m going to amend that just a little bit and say what a difference. A year makes maybe, or maybe not, you decide. We start this year in the grips of some inflation. While there are a few markets that are beginning to trend towards maybe a little bit of a recovery, the food market is still a major offender.

We also see the cost of shelter that has remained elevated as well. The interest rate on your home mortgages has doubled year over year and rents have stayed elevated, some by more than 25. We’ve seen the cost of a dozen eggs that have risen over 40% year over year. And most of us have noticed the size of processed foods, not just the price, but the size of processed food offerings that have gotten smaller significantly over the last year as well in signs of what we call shrink inflation.

Gasoline and diesel prices have been somewhat elevated. Now, gasoline prices have fallen slightly, but diesel prices have remained elevated. They’re still quite sticky in this particular market. However, what concerns us the most is the lack of attention being paid to the loss of refining capacity for diesel fuel, which produces jet fuel kerosene and so forth.

Over the year, diesel is the fuel of business in the United States. It runs our trains and our trucks. It runs our planes and our ships, and it runs the production of food and fiber in the United States as well.

Expect to see prices spike again this year as we head into the middle of the year and the peak of the drive season.”

Follow us on social media for the latest updates in B2B!

Image

Latest

Mike Dermont Diversified talks AV and healthcare experience
AV’s Critical Role in the Future of Healthcare Experience
July 15, 2025

As healthcare organizations face growing pressure to improve healthcare experience, patient outcomes, streamline operations, and address chronic staffing shortages, audiovisual (AV) technologies are becoming essential tools in delivering high-quality care. From in-room monitoring to patient communication systems, the AV industry is stepping up to meet the evolving demands of a sector that touches every life….

Read More
Applied Digital
Workforce, Housing, and Growth: How Applied Digital Is Revitalizing a Rural Town Through AI Infrastructure
July 15, 2025

As AI infrastructure spreads beyond tech hubs and into America’s heartland, companies face a new imperative: not just to build facilities—but to build trust, local partnerships, and long-term value for the communities that host them. In Ellendale, North Dakota, Applied Digital’s Polaris Forge 1 campus has become a case study in what rural revitalization…

Read More
Sepsis
Challenges of Identifying and Reducing Sepsis Mortality – Episode 2
July 15, 2025

Michael Rothman explores the complexities of sepsis identification and management, highlighting the challenges posed by varying definitions and clinical pathways. He discusses the ineffectiveness of current sepsis screening protocols, which often yield high false-positive rates and fail to reduce mortality meaningfully. The episode concludes by questioning the focus on sepsis-specific initiatives and suggesting that more…

Read More
engineering community
The Future of the Engineering Community: Equity, AI, and Real Connection
July 15, 2025

The Engineer Who Builds Communities, Not Just Systems! Angelie Vincent has spent more than two decades in aerospace engineering, but her real legacy might be the communities she’s built along the way. Now an AI Integration Engineer at Boeing, Angelie joins Professional Quotient host Jason Winningham for a wide-ranging conversation on neurodivergent leadership, workplace…

Read More