Gas spike may rise food costs
Experts say higher fuel costs could ripple
By: Betty Lin-Fisher
USA Today
..... Consumers are going to continue to feel the pinch of higher prices for everyday expenses, such as gas, as the war with Iran continues.
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When gasoline and transportation prices increase, they trickle down to many other categories, Shikha Hain, a Simon-Kucher partner and lead of the consumer sector for North America, told USA Today.
..... "It's not just going to be at the gas pump. There might be flow-through into the grocery store, but also with anything that has logistics tied to it and anything that's trucked, anything that sues gas," she said. that can include anything with delivery fees or shipping.
..... What happens with diesel prices will impact pricing for consumers, Claudio Galimberti, chief economist for Rystad Energy, said in an August 17 [2026] report.
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The diesel crunch has deepened globally, Galimberti wrote, including in the United States, where key diesel cracks - or the profit margin an oil refinery makes when turning a barrel of raw crude into diesel fuel - hit record highs in early August. [2026] That was due to Ukrainian strikes on Russian refineries and the renewed closure of the Strait of Hormuz keeping refining capacity physically off-line.
..... "That matters well beyond the pump: diesel is the work-hours fuel, running freight, farming and winter heating. It cost feds therefore through into core goods and food rather than sitting in the energy line alone," he wrote."
..... When prices increase, such as at the grocery store, they tend to stay elevated, and retailers use promotions to bring prices down, said Jain.
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Market research for Simon-Kucher has also shown that as prices incerase10% to 15%, "consumers start to trade down, delay big purchases, or stop purchasing altogether," she said.
..... Upward pressure may continue on gasoline and diesel prices, said Greg Upton, executive director of the Center for Energy Studies at Louisiana State University.
..... As of August 25, [2026] the average price of gasoline nationally was at $4.08 a gallon, 88.8 cents higher than a year prior, according to GasBuddy data. The national average price of diesel to $5.61 per gallon.
.....Seasonal transition to cheaper winter-blend gasoline could bring some relief, Patrick De Haan, head of petroleum analysis at GasBuddy, strote in an August 17 [2026] update, but "the two dominant challenges facing motorists - the closed Strait and the ongoing refinery strikes - show no signs of resolving anytime soon. until they do, the path for gas and diesel; prices remain tilted to the upside."
..... "That indicates that market participants expect today's supply pressures to ease over time, but prices are not expected to reach levels seen earlier this year [2026] before the conflict began in the near future," he said.
..... If disruptions continue, "elevated crude-oil and refined-product prices will keep upward pressure on these prices," Upton said.
..... However, "if the conflict subsides or supply chains continue adapting around it, prices should gradually decline, which is broadly consistent with what futures markets currently indicate."