(Omaha) High diesel prices, compared with gasoline, hit Midwest businesses and agriculture much harder. Diesel prices are about 72 percent higher than they were a year ago.
Creighton University economist Ernie Goss tells KSOM-KS95 News that high diesel costs are spilling over into the broader economy.
Goss says one often-overlooked factor is that diesel is more of a global product, while gasoline is more domestic. He says diesel is traded primarily in global markets, making it more vulnerable to international disruptions. The Iran war and supply chain disruptions through the Strait of Hormuz are affecting diesel prices more than gasoline prices.
Goss says limited diesel refining capacity is another factor driving prices higher. He says strong demand, combined with limited supply, is putting further pressure on prices. Goss adds that another concern receiving less attention is the future availability of diesel fuel.
Goss says reserves have been depleted and it will take time for diesel prices to begin coming down.
