U.S. diesel prices have surpassed a record $6 per gallon, a development that is beginning to impact American consumers and the broader supply chain. While not all consumers directly purchase diesel fuel, the soaring prices are expected to affect everyone through increased costs of goods, particularly those requiring refrigeration and long-distance transport.
According to U.S. Department of Agriculture data, energy, transport, and storage costs account for over 7% of total food expenses. Bernhard Dalheimer, an assistant professor in food economics at Purdue University, told TIME that perishable goods, such as vegetables, meat, and dairy, are most vulnerable to rising diesel prices due to their reliance on refrigeration and lengthy transportation routes. "The goods that need lots of refrigeration and are on long routes of transport that are perishable, so the vegetables, meat and dairy, those are more exposed to [diesel costs]," Dalheimer explained.
While price increases may not be immediately apparent at the grocery store, Dalheimer noted that shifts in costs travel slowly through the food pipeline. When these costs do eventually reach consumers, they are likely to have a more significant impact on lower-income families, who spend a larger proportion of their income on food. "These could be small price changes, but people with lower incomes spend a higher proportion of their income on food," he said. An unnamed expert emphasized the pervasive nature of diesel's influence, stating, "Not everyone drives on diesel, but everyone consumes on diesel."