Everyone is worried about gas prices, but diesel is driving inflation more than you think

CNBC ^

[FarCenter]

“The spread between diesel and motor fuel is the widest it’s ever been in the data,” said Mark Zandi, chief economist at Moody’s Analytics. “It’s $1 a gallon.. the average over the last few decades has been 30 to 40 cents. That gives you a sense of how out of balance it is ... By my calculation, one-tenth of the acceleration in inflation [over the past year] is due to the surge in diesel prices.”

That contribution to inflation includes related impacts.

“The farmer ploughing the field, getting the food to the store shelf: It’s the cost to FedEx and UPS getting the product we’re buying to the front porch — all of those ancillary knock-on effects,” Zandi said.

But for commodities from production to shipping, the contribution of diesel prices to inflation is even greater. Zandi calculates that 17% of the acceleration of commodity prices is due to the higher diesel costs.

“Diesel is used in farming. It’s used in a lot of industrial processes. All the machinery runs on diesel. A lot of construction runs on diesel,” said Francisco Blanch, global head of commodities and derivatives research at Bank of America. “I think it’s very problematic. Trucks run on diesel, trains run on diesel, and planes run on jet fuel which is also diesel.”

[FarCenter]

I thought jet fuel was more like kerosene

[Restless]

The Carter years were my high school years, so I remember that horrible economy very well. Bidenflation, though, is off the charts. I’ve never seen food prices increase so much on so many things so quickly. I shop at Wal Mart every couple of weeks for groceries, and I saw a bag of generic tortilla chips jump from $1.21 to $1.72 in just two weeks. My favorite generic chip dip went from $1.00 (the price it had been for years) to $1.62 in one big price jump. I bypassed the meat section because I was already depressed enough.

[Wonder Warthog]

"I thought jet fuel was more like kerosene"

It is. But you can't expect reporters to understand anything "scienc-y", even something as elementary as that.

[Paladin2]

“Winter diesel fuel is a mix of grade no.1 and grade no.2 fuel. The main component of grade no.1 diesel is kerosene. Meanwhile, it doesn’t contain paraffin. These two factors lower the cloud and pour points of the mix, thus preventing gelling in cold temperatures.

Depending on the area you live in, the ratio of no.1 to no.2 diesel fuels in the winter blend can vary. Generally, it’s about 20 to 80. For the coldest regions, pure grade no.1 diesel fuel may be required.

Even though pure grade no. 1 diesel fuel may seem an excellent solution due to its low gelling point, it’s more expensive and has a lower energy content. Running an engine on pure grade no.1 diesel fuel continuously could reduce the fuel system’s life. “

[Organic Panic]

6 bucks a gallon here. Let’s go Biden.

[Puppage]

Where is here? Cali?

[Spktyr]

Jet fuel, kerosene and diesel are all fairly similar.

[Red Badger]

It is.

Back when

The
Real
Uniter
My
President

was in office, Here local gasoline and Diesel were the same price.....................

[Repeal The 17th]

Fuel prices effect everything.
EVERYTHING!

[marron]

Jet fuel is basically diesel held to tighter specifications.

[3RIVRS]

Yep. One local station takes the price off the large board when its above $5 I guess so they don’t scare off gas customers.

[rellic]

“Running an engine on pure grade no.1 diesel fuel continuously could reduce the fuel system’s life. “
An old timers trick is to add cheap ATF to your fuel, about a quart for every 60 gallons. Diesel injector pumps need lubrication.

[dainbramaged]

I got my driver’s license at age 16 in 1968 and the price of diesel at the local truck stop was 9.9 cents per gallon. Regular gasoline was in the low 20’s.

[lewislynn]

I remember when gasoline was less than a dollar and diesel was way cheaper than gasoline. But that was before everybody and their brother just had to have a (lifted) diesel pickup.

So, if you're driving a diesel pickup for fun, or just because, you're part of the problem for now.

There isn't anything that doesn't require a commercial truck at some point.

[deport]

I remember when gasoline was less than a dollar

---

I pumped many a gallon as a kid growing up at my family’s
stores for 25 cents a gallon or so. Bumped the tires, raised
the hood to check the oil / water and wiped the windshield.

[citizen]

I remember when gasoline was less than a dollar...

---

"Gimme $2" was how we rolled for the week. 25 cents/gal (or less) when I was in HS.

[CodeToad]

Democraps love their Big Oil. Every time they get in office Big Oils makes Big Profits.

[Paladin2]

Thanks for the tip.

[Capt_Hank]

I’m so happy that I sold my big boat a few years ago. Forward and aft fuel tanks, 508 gals. The Charter Fleet is going to take a beating with this mess.

[sauropod]

.