Price of diesel surges 50% in Massachusetts since start of war with Iran

While the average price of gas is down 1 cent over the past week in Massachusetts, diesel prices remain significantly higher, having surged more than 50% since the start of the war with Iran. 

At a family-owned farm in Billerica, longtime farmer Bill Griggs said the spike is adding uncertainty to his operation as tensions in the Middle East drive up fuel costs. Griggs relies on diesel to fuel tractors and heat greenhouses, both essential to keeping his business running. But he said recent deliveries have come at a steep price.

"I'm assuming when I ask them to fill my diesel tank, it's going to be expensive," Griggs said, pointing to his latest bill in April, which was hundreds of dollars more than the month before.

The uncertainty in the Strait of Hormuz is also affecting supply chains. Griggs said he is still waiting on fertilizer shipments, which will also come at a steeper cost.

"That's a big part of the world's food supply, people are missing," he said.

Ultimately, he said, those rising costs are passed down to consumers.

"It all adds up, you cannot avoid that," Griggs added.

Researchers at Brown University have launched an energy cost tracker showing the financial toll since the start of the war in Iran. According to the data, household energy costs have climbed to more than $160 per U.S. household.

"That's money out of everyday Americans' pockets," said Brown professor Jeff Colgan.

Colgan said diesel prices affect nearly every part of the economy.

"Whether it's from Amazon or from a grocery store, or everything gets touched by diesel prices because diesel is the fuel by which all of the goods in our economy really get shipped around," Colgan added.

"It takes a while before higher diesel prices really trickle all the way to the supermarket shelf. So we're in for some additional pain in terms of pricing as a result," said Mark Schieldrop, AAA Northeast Senior Spokesperson. 

Experts say even if the conflict were resolved immediately, it could still take weeks before diesel prices begin to come down, if they do at all.  

"Right now it's a lot of uncertainty. If the war ends, we'll start to see some more certainty, and one possibility is higher prices as the world comes back from this major event," added Schieldrop.