Key facts
- Walmart expects diesel prices to erase its $2.9 billion tariff refund by end of 2027.
- Deutsche Bank analysts noted that elevated diesel costs are flowing through to consumer prices.
- Walmart anticipates an additional 0.5 to 1 percentage point of inflation in 2027 due to fuel costs.
Walmart anticipates that rising diesel prices will offset its expected $2.9 billion tariff refund by the end of 2027, according to a Deutsche Bank analyst note. The bank's analysts met with Walmart CFO John David Rainey and reported that the company expects fuel costs to contribute an additional half to one percentage point to inflation in 2027. Deutsche Bank noted that elevated diesel prices are impacting Walmart through direct transportation costs and indirectly as suppliers pass on their own increased expenses. The company had previously stated it was using the majority of the tariff refund to lower prices for consumers. A Walmart spokesperson acknowledged that sustained increases in fuel and transportation costs affect the company but stated efforts are made to minimize their impact, adding that some current discounts are temporary.