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By Hollie Silverman
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Diesel prices in Michigan surged to a record average of $6 per gallon on Sunday, Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on X.
The new price has eclipsed the previous high set during the 2022 energy crunch and intensifies economic pressure on truckers, farmers, and manufacturers. It lands at a moment when voters are already strained by rising costs and increasingly anxious about inflation’s persistence amid the Iran war and the closure of the Strait of Hormuz.
Diesel is the backbone of the state’s economy, powering long‑haul freight, agricultural machinery, construction equipment, and the distribution networks that keep store shelves stocked. When diesel prices climb to record levels, the effects ripple far beyond the pump. Transportation costs rise, food and goods become more expensive to move, and small businesses face tighter margins.
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Economists warn sustained high diesel prices could reignite inflationary pressures just as households were beginning to see modest relief.
What to Know
The new record in Michigan reflects a diesel market that has been tightening for months.
De Haan said the surge is the result of a “perfect storm of tight refining capacity, strong freight demand, and ongoing global supply disruptions.” He noted diesel inventories remain “well below seasonal norms,” leaving the market vulnerable to even minor refinery outages or shipping delays.
He noted the Iran war has repeatedly disrupted tanker traffic through the Strait of Hormuz—a chokepoint for roughly a fifth of the world’s oil—contributing to higher wholesale prices that eventually reach consumers.
Farmers are entering a period of heavy diesel use as planting season accelerates, and many say the spike is hitting at the worst possible time. According to data published by the Michigan State Farm Bureau in its April agricultural outlook report, producers are seeing operating cost increases of 15 to 25 percent compared with last spring, driven largely by fuel.
John Delmotte, a Michigan farmer and current president of the Michigan Corn Growers Association, said these cost increases are slashing already slim margins, putting his operation at risk. “It’s not the $4.50 corn that’s the problem,” Delmotte told Bridge Michigan, “It’s the cost of the inputs.”
According to the report, 20 to 30 percent of the world’s fertilizer comes through the strait, compounding the issue for farmers who require diesel and fertilizer for their operations. This could mean higher food prices down the line as farmers struggle to break even.
Previous Diesel Prices in Michigan
According to AAA, the average price for diesel in The Great Lakes State on Saturday was $5.963. A week ago, AAA said the average price was $5.128. Going back to early April, the average price was $4.982 while the average price a year ago was $3.492.
What Happens Next
Analysts say the next several weeks will determine whether the new record becomes a brief spike or the start of a prolonged period of elevated diesel prices.
Economists caution that if diesel remains high into the summer freight season, it could add new pressure to inflation and strain household budgets already stretched by years of rising costs.
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