Today, our country seems to be in a crisis with the high cost of products we all use daily.
Once again, American consumers have become the victim of high prices, but both beef and diesel are commodities and they are priced due to supply and demand.
Both beef and diesel are on the global market. Of course, diesel is traded more often around the world.
I’ve read beef will take at least two years to see prices drop, and diesel is projected to stay high for at least another year.
In all of these projections, there are a number of issues which could change supply and demand, but even politicians getting involved may not help in the short term. If anything, they will just complicate the issue.
It looks to me, oil and diesel will both stay high until countries stop the two major ongoing wars, which are affecting too many huge oil producers.
Diesel is usually always more expensive due to higher production costs and federal taxes, as well as heavy commercial demand.
The U.S. produces ultra-low sulfur diesel which brings in more national regulations.
On top of this, some areas of the country are experiencing severe supply strain and regional shortages, which have caused U.S. diesel inventories to drop to a record low of 107.9 million barrels in September 2026.
Let’s face it, America moves on diesel.
The U.S. is importing around four million barrels of crude oil per day from Mexico, Canada and other countries.
Canada is the largest and provides around 60 percent of all foreign crude oil imported by the U.S. Most of this oil is heavy oil from tar sands and costs more to refine.
Some countries in the European Union are letting the U.S. import diesel from their reserves, but it will take time, and one wonders what the U.S. had to trade to make this happen.
Business leaders have mixed perceptions of how long diesel prices will stay elevated.
Companies that see an increase in diesel costs as long-term investments are raising prices, but those who believe price hikes are temporary are absorbing increases without passing them down to customers.
High diesel prices couldn’t have come at a worse time for agriculture, as it is harvest time for farmers.
Tractors, combines and other machinery are running 24 hours, seven days a week, and don’t forget about the large trucks moving products to storage or markets.
Ranchers have been hurt as cattle have been gathered and shipped.
I could go on and on about those who have been hurt by high diesel prices because it is most everyone in the country.
Sure, oil producers will make more money, but the oil industry runs on diesel like the rest of the country and their expenses will be higher too.
According to the U.S. Energy Information Administration, “Petroleum refineries in the U.S. produce about 19 to 20 gallons of motor gasoline and 11 to 13 gallons of low-sulfur diesel from one barrel of crude oil.”
Somehow, we need more barrels of crude oil.
Dennis Sun is the publisher of the Wyoming Livestock Roundup, a weekly agriculture newspaper available in print and online.
