SAN ANTONIO – Two major economic developments hit within 24 hours of each other Wednesday, and experts say San Antonio families could feel the effects at the gas pump, the grocery store and in their monthly bills.
Diesel fuel crossed $6 a gallon nationally for the first time on record, according to GasBuddy. At the same time, the Federal Reserve raised its benchmark interest rate by a quarter of a percentage point to between 3.75% and 4% — the first rate hike since 2023.
What’s driving diesel prices?
GasBuddy Head of Petroleum Analysis Patrick De Haan said the surge is being driven by a combination of geopolitical tensions, including disruptions tied to the Strait of Hormuz and ongoing conflict between Russia and Ukraine.
“Diesel is kind of the default fuel for the economy,” De Haan said. “Trains, tractors and trucks all consume diesel. Your next delivery, your restaurant visit, your night out is going to be impacted in one way or another by the rise in the cost of diesel fuel. It’s going to leach into grocery stores.”
De Haan said 44 of the nation’s 50 states are now seeing diesel prices in record territory. San Antonio is no exception.
He added that meaningful relief is unlikely until tensions on the world stage begin to ease.
“It’s only improvements or de-escalations in the current issues that would really mean improvement to what consumers are paying,” De Haan said. “What consumers should be looking for is whether these situations continue to escalate and get worse — which would mean higher prices — or we start to see some de-escalation, which would reduce risk, allowing oil and diesel to start flowing to the market.”
Truckers are fed up
At the Flying J Truck Stop on San Antonio’s East Side, truck driver Freddy Pagai didn’t mince words.
Pagai, who drives out of Chicago, said his company covers his fuel costs — but he knows the bill lands somewhere.
“We’ve got to take it. They’ve got the power. We can’t do nothing on it,” Pagai said.
He said the frustration extends well beyond the trucking industry.
“Look at the prices, man. How are you going to do that to the people that are making this country go around?” Pagai said. “Without truckers, nobody gets their stuff. And you’re ripping them off? Believe me, every trucker will say the same thing.”
The Fed rate hike adds another layer
On top of rising fuel costs, the Federal Reserve’s decision to raise interest rates Wednesday adds another financial pressure point for many families.
Jose Moreno, a finance professor at the University of the Incarnate Word, said the combination of inflation and higher borrowing costs could create a difficult situation for households already stretched thin.
“You have now not only one problem, but you have two problems,” Moreno said. “The cost is going to increase for you when you buy the products, but also is going to increase the cost of getting that loan to pay for that product.”
Moreno said consumers carrying credit card balances should expect their interest rates to move up quickly following the Fed’s announcement. He urged San Antonians to be mindful of their spending and avoid taking on new debt if possible.
He also noted that small businesses in the region could feel the squeeze, as borrowing costs for growth and expansion rise alongside everyday operating expenses.
What can you do?
De Haan said there’s not much consumers can do about the price of diesel directly, but suggested using apps like GasBuddy to find the lowest fuel prices nearby. The app tracks both gasoline and diesel prices and offers a platform that can help drivers save money at the pump.
As for the broader economic picture — both experts agreed the situation bears watching closely in the weeks ahead.
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