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Soaring Diesel Prices Fueling Inflation

The soaring cost of diesel is fueling inflation.

According to NPR, “…trucks move 70% of all freight in the U.S.,” including distributing goods that are from cargo ships and trains.

As discussed in the story, trucking companies can pass the added cost on to those receiving the trucked materials but independent truckers can’t so they may stop doing business which will only boost the cost of trucking goods.

In the end, the high cost of diesel will be passed on to the consumer who will pay higher prices for food and other goods.

The surge in the price of diesel is attributed to short supply and surging demand.

Diesel is one of the refining products called “middle distillates” and according to CNBC, “U.S. distillate inventory is now at the lowest level in more than decade.”

CNBC added:

Refiners can’t just ramp up output to meet surging demand, and utilization rates are already above 90%. In the U.S., refining capacity has decreased in recent years. The largest refining complex on the East Coast — Philadelphia Energy Solutions — shut down following a fire in June 2019.

The story continues, saying, “It’s going to be a double whammy on consumers in the weeks and months ahead as these diesel prices trickle down to the cost of goods — another piece of inflation that’s going to hit consumers.”

The Los Angeles Times also wrote about the cost of diesel.

NPR did an interview with a trucker on diesel prices titled, “The national average price for diesel is up 75% from a year ago.”

Detroit Local 4 reported on the high cost of diesel.

President Biden’s effort to fight inflation will fail because his polices are contributing to lower domestic energy output.

The U.S. needs to increase the supply of oil and natural gas to lower prices but that’s not going to happen because Biden has an anti-fossil fuel agenda.

Tom Borelli

Dr. Tom Borelli is a Newsmax TV contributor and radio commentator addressing political issues from a conservative grassroots perspective. As a columnist, he has written for The Washington Times and authored articles for Newsmax Magazine, Newsmax Insider and previously was a co-host with his wife Deneen Borelli on the SiriusXM Patriot channel. Dr. Borelli appeared on numerous television programs, including the highly ranked Fox News Channel’s “The O’Reilly Factor,” “Hannity,” “The Kelly File," and "America’s News Headquarters." He has also appeared on Fox Business Network’s “Making Money with Charles Payne” and “After the Bell” as well as TheBlaze TV’s "The Glenn Beck Program" and "Dana!" Prior to working for public policy organizations, Dr. Borelli was a managing partner with the investment advisory firm of Action Fund Management, LLC and a portfolio manager for the Free Enterprise Action Fund (FEAF) where he used shareholder activism to challenge corporations that sought to profit from the growth of government. During his 25 years with the Altria Group, Inc., he built a foundation in public policy and issues management, drawing from diverse experiences ranging from basic research to corporate affairs. Dr. Borelli served as science fellow for the U.S. House of Representatives' Committee on Science, Space, and Technology during the 100th Congress. Dr. Borelli has also published scientific papers on interferon and human leukemia.

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