US diesel prices overtake Biden-era average in blow to Trump

{"text":[[{"start":7.014,"text":"The cost of diesel during Donald Trump’s second term has overtaken the average during Joe Biden’s presidency, as the surge of inflation triggered by the Iran war becomes a growing liability for the White House."}],[{"start":18.673,"text":"The price of a gallon of diesel since Trump returned to office in January 2025 has averaged $4.09, according to FT calculations based on Energy Information Administration data."}],[{"start":30.89,"text":"That compares with $4.08 during Biden’s four years in office, when diesel surged due to the energy shock that followed Russia’s full-scale invasion of Ukraine."}],[{"start":null,"text":"

"}],[{"start":39.377,"text":"The rise in the cost of diesel — the lifeblood of the US economy, due to its critical role in industries such as agriculture and transport — adds to the pressure facing Trump as voters grow increasingly frustrated with high energy prices ahead of November’s midterm elections."}],[{"start":54.52,"text":"“People everywhere hate it when energy prices rise — and they blame incumbents,” said Jeff Colgan a political science professor at Brown University. “And diesel is the invisible fuel that we are all consuming.”"}],[{"start":64.8,"text":"“The reality is that the vast majority of manufactured goods in the country are shipped on some form of transportation that is powered by diesel.”"}],[{"start":74.32,"text":"In a further sign of Trump’s inflation troubles, 30-year mortgage rates rose to 6.66 per cent last week, the highest level in a year, as investors worry that the Federal Reserve will struggle to contain the latest bout of inflation."}],[{"start":88.519,"text":"American fuel costs have surged since the US and Israel began their bombing campaign of Iran on February 28, curbing energy supplies as Tehran essentially closed the Strait of Hormuz, a crucial transit waterway."}],[{"start":null,"text":""}],[{"start":102.55,"text":"The price of diesel has risen 43 per cent to $5.37 a gallon, according to the AAA, while petrol, a more visible sign of inflation due to its direct use by motorists across the country, is up 37 per cent to $4.09."}],[{"start":117.28,"text":"Global crude oil prices, which reached more than $120 a barrel at the peak of the conflict, dropped below $80 on Tuesday as US Treasury secretary Scott Bessent signalled that a deal to reopen the strait was near."}],[{"start":131.445,"text":"But pressure remains on diesel, which rose more quickly than petrol and will probably be slower to fall, analysts said. They pointed to low inventories, limited refining capacity and Russia’s move to ban exports until 2027, removing hundreds of thousands of barrels a day from the market."}],[{"start":148.575,"text":"US refineries are running at levels considered to be at or near full capacity as American energy groups look to seize on the high margins that can be achieved from turning crude into products such as petrol and diesel."}],[{"start":161.007,"text":"Marathon Petroleum, a large US refiner, reported on Tuesday a more than threefold increase in its second-quarter profits as it earned far more per barrel of oil than it had in the same period a year earlier."}],[{"start":null,"text":""}],[{"start":172.08,"text":"As petrol demand falls at the end of the summer driving season, diesel consumption is set to increase due to its use in heating, further squeezing the market, and leaving it vulnerable to supply disruptions like hurricanes."}],[{"start":184.96,"text":"“Diesel is the problem fuel,” said Tom Kloza, an independent oil analyst. “The days of jet fuel tightness are over . . . it looks like we’re probably going to be in the clear on gasoline. But diesel — not so much.”"}],[{"start":196.545,"text":"“There’s a really good chance that we’re going to have diesel tightness in the coastal markets in the US and in Europe and in Asia,” he added."}],[{"start":204.079,"text":"The average cost of petrol during Trump’s second term has reached $3.34 a gallon compared with $3.46 during Biden’s presidency, $2.48 during his first term and $2.97 during Barack Obama’s administration."}],[{"start":220.029,"text":"Brown University calculates US households have each spent more than $600 extra in petrol and diesel costs since the Iran war broke out."}],[{"start":228.8,"text":"Trump was re-elected in part due to his vow to tackle stubbornly high inflation. But with three months to go to midterm elections to determine control of Congress, many voters blame him for the elevated fuel prices."}],[{"start":241.115,"text":"An AP-NORC poll last week put Trump’s approval at just 33 per cent, with four in 10 voters saying the cost of fuel for their car was a “major source” of stress, up from three in 10 in February. More than seven in 10 said it was important for the US to prevent any further rise in oil and gas prices."}],[{"start":258.64,"text":"The president has lashed out at oil majors which have bagged windfall profits on the back of the higher prices. ExxonMobil and Chevron reported quarterly earnings of $14.5bn and $12.1bn respectively last week."}],[{"start":270.964,"text":"“I don’t like it. They’re making too much money based on a shortage,” Trump said on Monday. “They ought to give some of that back to the public, and they better cut the retail price, the consumer price.”"}],[{"start":281.44,"text":"Analysts have suggested the president — who previously accused oil companies of “price gouging” — could take drastic steps to stem the rise."}],[{"start":289.878,"text":"“Donald Trump’s frustration with enduringly high pump prices could eventually bring a muscular intervention in oil and products markets, such as export limits,” said Kevin Book at consultancy ClearView Energy. “That moment may be getting closer.”"}],[{"start":307.92,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1785899436_4708.mp3"}