Diesel used by farmers in the UK and US became 10 per cent more expensive in under a week, while the US average reached an all-time high of 5.85 dollars a gallon. The reports link the surge to disrupted energy trade during the Iran war and Russia's continuing export ban, with freight, farming and construction directly exposed to the fuel.
Diesel used in farm vehicles and machinery in the UK and US rose 10 per cent in less than a week. Lower-taxed red diesel, widely used on British farms, sits at the centre of the increase. Farmers described the rapid rise in a basic operating input as “astronomical.” The move directly lifts the cost of field work and leaves producers facing a new price level when they make selling and investment decisions.[1]
The US diesel average reached an all-time high of 5.85 dollars a gallon on Friday. The fuel is used throughout road freight, delivery networks, farming and construction. Its rise therefore extends beyond drivers at the pump and may feed into transport costs for a wide range of goods. The price peak arrived as the six-month war with Iran disrupted fuel flows and energy trade.[2], [3]
Diesel prices rose as fighting between the US and Iran flared again and Russia's fuel-export ban remained in place. Tehran's closure of the Strait of Hormuz after the February strikes pushed oil and gas prices higher. Diesel's wide use in road freight, farming and construction carries the supply disruption into daily operating costs. British farms' use of lower-taxed red diesel explains the direct route from the price increase to agricultural vehicles and machinery.[1], [3]
