Bob Elliott
· Nonconsensus
· April 20, 2026 at 10:32
· ⏱ 3 min read
| Read on Substack ↗
Summary
The author highlights that while gasoline prices remain below 2022 peaks, diesel and jet fuel have surged to all-time highs. Because these fuels are foundational inputs for nearly all economic activity and transportation, their elevated prices threaten to trigger significant secondary inflation, disrupt global supply chains, and erode household spending power.
•Diesel and jet fuel prices have reached all-time highs, outpacing the price recovery of traditional gasoline.
•Combined US consumption of diesel and jet fuel is substantial, equating to roughly two-thirds the magnitude of traditional gasoline consumption.
•Because diesel is the primary transportation fuel, its price surge acts as a direct input cost increase for almost all businesses.
•Direct and indirect fuel surcharges are expected to return quickly, mirroring the economic squeeze seen in 2022.
•Global physical supply is tightening as traditional refiners in countries like China, Russia, and Thailand halt or limit refined exports.
•The passthrough of these elevated spot prices risks further eroding household spending power and driving up producer prices.