Diesel prices are surging putting further pressure on Europe

Global diesel refining capacity has become so tight that every disruption has an outsized impact on availability and prices Image: Marc John/Bonn.digital/picture alliance

Even if you don't fill your own vehicle with diesel, its price has a big impact on your life.

While gasoline is mainly a consumer fuel for cars, diesel powers much of the wider economy, from freight transport and farming equipment to construction and industry.

That is why diesel shortages or price shocks can have a bigger economic impact than higher gasoline prices by raising the cost of moving goods and operating heavy machinery.

As businesses become strained, these higher energy costs will be passed on to consumers and add to a growing cost-of-living crisis and inflation . So what's driving global diesel prices higher?

The United States and China are among the world's largest diesel producers. China keeps much of it for domestic use, leaving the US as the world's biggest diesel exporter.

Still, the weekly average price of a gallon of diesel is now $6.52 (€5.73) in the country, according to the US Energy Information Administration , a big increase from a year ago when it averaged $3.74 per gallon or two years ago when it averaged $3.53 a gallon.

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