NJ diesel just hit an all-time record high, and everyone pays for it

New Jersey diesel prices just did something they've never done before.

According to an AAA Club Alliance press release, the average price of diesel in New Jersey reached $6.36 a gallon this week. That breaks the state's previous all-time record of $6.336, set back on May 18, 2022, during the fuel spike that followed Russia's invasion of Ukraine.

This isn't just a New Jersey story. Nationally, diesel hit $6.39 a gallon, also a new record, surpassing the old national high of roughly $5.82 from June 2022. Pennsylvania hit $6.50. Delaware hit $6.35.

Regular gasoline is climbing too. The national average rose to $4.43, up 16 cents in a single week and more than a dollar higher than a year ago. South Jersey's own regular gas average sits at $4.41, up 5 cents from last week and up $1.32 compared to a year ago.

Why this is happening

Crude oil is trading around $100 a barrel right now. AAA points directly to continued volatility in the Strait of Hormuz, the shipping chokepoint tied to the ongoing conflict between the U.S. and Iran, as the driver.

"Drivers are facing another difficult week at the pump as prices keep climbing," said Jana Tidwell, spokesperson for AAA Club Alliance. "With crude oil averaging around $100 per barrel and continued volatility in global energy markets, drivers should be prepared for fuel prices to remain elevated."

SEE ALSO: NJ gas prices rising: the Iran conflict connection

Photo by ftodne on Unsplash

Why diesel matters more than most drivers realize

Most of us don't buy diesel ourselves, but almost everything we buy gets touched by it somewhere along the way.

Trade publication Heavy Duty Trucking reported this month that record diesel prices are already squeezing trucking fleets nationwide, exactly the trucks that move groceries, building materials, and retail goods into and through New Jersey every single day.

Diesel also powers a lot closer to home than people think. Construction and landscaping equipment. Farm machinery. And in New Jersey specifically, not every train runs on electricity, NJ Transit's Raritan Valley Line is diesel-powered, since it's the one line in the system without overhead electrification.

When diesel costs jump this much, it doesn't stay contained to truck stops. It works its way into shipping costs, into construction bids, into the price of anything that had to travel to get to you.

What comes next

AAA isn't projecting relief anytime soon. With the Strait of Hormyz situation still unresolved and crude oil holding near $100 a barrel, elevated prices look like the current normal, not a short-term spike.