Diesel is a terrible thing for an economy that depends on

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Wanna bring inflation in heels? Of course, there is no single simple solution, otherwise we would have already done it. But it would be nice to start with the rejection of gasoline and diesel.

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Fossil fuel prices are skyrocketing. Gasoline prices are up more than 75% year-over-year and diesel prices are up 55%. according to AAA. There are many reasons for this – Putin’s war in Ukraine, an unexpected surge in demand after early shutdowns due to the pandemic, an oil refinery on the East Coast that literally exploded a few years ago and so on.

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The recent surge shows the recklessness of tying up the transport sector, which accounts for from 6% to 12% of GDP in developed countries, to consumables with high volatility, which are widely bought at the spot price.


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Diesel prices alone account for about 17% of the inflation we see today. according Mark Zandi, chief economist at Moody’s Analytics. Inflation in the energy sector as a whole amounted to almost 30% in April. Bureau of Labor Statistics, more than three times more than anything else. Moving away from fossil fuels would reduce inflation by almost a percentage point.

But how to replace the diesel fuel that runs through much of our economy, from trucking to trains, from shipping to agriculture? It won’t be easy, but quite simple: electrification.

An electrified economy based on renewable energy is less likely to be affected by sudden price shocks that oil and gas can trigger. That’s why.


Credit: techcrunch.com /

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