Gasoline Nears $4.43 and Diesel Hits $6.39 as Shortages Outweigh $100 Oil Fears
Updated
Updated · Fortune · Sep 17
Gasoline Nears $4.43 and Diesel Hits $6.39 as Shortages Outweigh $100 Oil Fears
3 articles · Updated · Fortune · Sep 17
Summary
$4.43-a-gallon gasoline and record $6.39 diesel prices are economists’ bigger worry than crude above $100, because refined fuels hit households and business costs more directly.
Refinery-capacity shortages, compounded by war-driven pressure on fuel markets, have pushed gas and diesel higher than oil prices alone would imply even after Brent eased from nearly $110 to about $107.
Oxford Economics said sustained prices at these levels could trim consumer-spending growth by a few tenths of a percentage point next year, with lower-income Americans most exposed.
The U.S. now spends about 2.5% of income on gasoline versus 6% in 1980, and economists say oil would need to move closer to $140 or even $200 to inflict broader damage.