Drivers in the United States are currently facing record-high diesel prices, with the average price exceeding $5.85 per gallon. This marks an increase from an average of $3.71 per gallon a year ago, according to the American Automobile Association (AAA). The rise in diesel prices is attributed to the ongoing conflict involving the US and Israel with Iran, which has impacted wholesale oil prices since February. Diesel is primarily used by commercial vehicles, including trucks, trains, boats, buses, farming vehicles, and construction vehicles.
In response to the rising fuel costs, US President Donald Trump has pledged to lower gas prices through a potential oil deal with Venezuela. This agreement, announced recently, involves the development of 17 strategic oil fields in Venezuela, which are estimated to hold 65 billion barrels of oil. The deal also includes an investment of over $100 billion and more than $209 billion in taxes, as stated by Interim Venezuela President Delcy Rodríguez. The US government is expected to retain 55% control of a joint venture with a private operator in Venezuela.
Analysts have expressed skepticism regarding the deal, questioning whether it will effectively address the long-standing issues that have hindered investment in Venezuela's oil industry. The conflict has also led to limited oil supplies, particularly as Iran has restricted access to the Strait of Hormuz, a critical shipping route for global oil transport.
The surge in diesel prices has raised concerns among US voters, especially with the midterm elections approaching in November. Recent polling by Reuters/Ipsos indicates that Trump's approval rating has dropped to 33%, with only 31% of Americans supporting the ongoing conflict. Additionally, there are significant regional disparities in diesel prices across the country. For instance, in Washington state, the average diesel price is $6.81 per gallon, compared to $5.03 per gallon a year ago. In contrast, the average petrol price has also reached historically high levels, at $4.15 per gallon, up from $3.20 a year ago.