High diesel prices may add 'another squeeze' on consumers, economist says

Rising diesel prices could place an additional financial burden on consumers, according to an economist, even though the impact tends to be less directly visible than increases in gasoline prices.

Unlike gasoline, which most consumers purchase directly for their own vehicles, diesel costs are often embedded in the price of goods and services, since diesel fuels much of the freight and logistics network that moves products through the economy.

As a result, higher diesel prices can contribute to broader inflationary pressure by raising transportation and shipping costs, which businesses may pass on to consumers through higher prices on a wide range of goods.

Because this effect is indirect, consumers may not immediately associate rising prices on everyday items with underlying moves in diesel costs, even as the cumulative impact on household budgets builds over time.