US diesel prices hit an all-time-high

Drivers in the US are paying more than ever for diesel at the pump as the US-Israel war with Iran continues to hit Americans’ wallets.

The average price for one gallon of diesel in the US has hit $5.85, compared to an average of $3.71 a year ago and above the previous high following Russia’s full-scale invasion of Ukraine, according to the American Automobile Association (AAA).

Fuel prices have soared since the Iran conflict began at the end of February, mirroring the surge in wholesale oil prices.

In response, US President Donald Trump recently pledged to “substantially lower Gas Prices for all Americans” through an oil deal with Venezuela, which the US invaded in January.

The agreement, announced on Saturday, calls for the development of 17 strategic oil fields with a proven potential of 65bn barrels, as well as “an investment of more than $100bn (£73.9bn) and more than $209bn in taxes” for Venezuela, according to Interim Venuzuela President Delcy Rodríguez.

The US government will retain 55% control of a joint venture with an “experienced private operator in Venezuela”, a US official told the BBC’s US partner CBS News.

But some analysts have reacted with scepticism, including questioning whether the deal would address long-running obstacles that have deterred investment in Venezuela’s oil industry.

Oil is a key ingredient in car fuel and supplies have been limited by Iran responding to the war by effectively closing the Strait of Hormuz, a narrow waterway south of the country through which a fifth of the world’s oil is transported.

Rocketing pump prices have angered US voters ahead of the crucial midterm elections in November.

According to recent Reuters/Ipsos polling, Trump’s approval rating has fallen to 33%, ​with just 31% of Americans approving of the conflict.

However, not all Americans face the same level of price rises. According to the AAA’s data, those in the Western states pay much more than those elsewhere, due to tax differences and distance from US oil producers.

For example, in Washington, average diesel prices are $6.81 a gallon, compared to $5.03 a gallon a year ago.

As well as high diesel prices, Americans also face historically high petrol costs, with the average price per gallon reaching $4.15 compared to $3.20 a year ago.