U.S. diesel prices soar past $6 a gallon, deepening strain for hauling everyday goods
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Diesel prices in the U.S. hit yet another record on Friday, soaring past $6 a gallon on average as Washington’s war with Iran disrupts the world’s flow of fuel.
The national average of nearly $6.06 is up from $5.85 last week and almost $3.71 this time last year, according to motor club AAA. In Minnesota, the average price reached $5.90.
Higher diesel prices mean more expensive transportation for a long list of everyday goods. That’s because diesel is used for many freight and delivery networks. And some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.
Shoppers may feel more and more sticker shock, particularly in the grocery aisle. Perishable foods, like meat and produce, face one of the most immediate strains of expensive diesel because they need to be hauled in and restocked frequently — or may be harvested using farm equipment powered by the fuel.
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It can take time for those costs to trickle down. But the surge in diesel prices doesn’t appear to be going away anytime soon.
Prices at the pump for diesel and regular gasoline — which hit nearly $4.30 on average in the U.S. Friday — closely follow that of crude oil. And oil has renewed its rise recently. This week, both Brent, the international standard, and U.S. crude surpassed $100 a barrel for the first time in months as fighting between the U.S. and Iran escalated again.
Political ramifications may pile up in the meantime. President Donald Trump, who has repeatedly tried to downplay the effects of the war he co-launched, said that oil prices likely won’t come down until after November’s midterm elections.
What’s driving the latest jump for diesel
American diesel prices are now over 60 percent higher than they were before the U.S. and Israel attacked Iran in late February, when the national average sat at about $3.76 per gallon per AAA. Prices quickly climbed as the cost of crude oil — the main ingredient in refined fuel like diesel, as well as gasoline — soared amid supply chain disruptions across the Middle East, notably with most tanker traffic bottlenecked in the key Strait of Hormuz.
Despite some during hopes for peace earlier in the summer, oil has now renewed its climb as fighting once more escalates. And more supply disruptions are piling up. The International Energy Agency reported Friday that Saudi oil production fell to a three-decade low last month due to Houthi attacks on its energy facilities.
And elsewhere, losses in the Middle East have been amplified by the war in Ukraine, as the IEA also noted Friday. Disruptions in Russia’s refining system stemming from intense Ukranian attacks have nearly halted product exports.
When adjusted for inflation, fuel prices have been higher in the past. Ahead of the 2008 financial crisis, for example, diesel hit about $4.74 a gallon, equivalent to $7.20 in 2026, according to the government’s latest data. And 2022’s then-record of nearly $5.82 — reached just months after Russia invaded Ukraine — would be about $6.56 this year when accounting for inflation.
That doesn’t take the pain away from today’s steep prices, which are already bringing ripple effects for the economy and wider costs of living. Drivers are feeling the pain with gasoline, too.
Friday’s average $4.29 for a gallon of regular unleaded is up from $2.98 before the Iran war, although still below the 2022 peak of nearly $5.02 a gallon nationwide.
Diesel has been more expensive than gasoline in the U.S. for decades, and its price has risen at a faster pace before. Some reasons include less flexibility in demand and diesel’s position in global commerce overall. Individual households may find ways to drive less when gas prices are high, for example, but there’s fewer immediate substitutes for networks that rely on diesel to haul goods worldwide.
All eyes on food
Diesel is integral to every part of the food supply chain. It powers farm equipment and fishing boats, as well as the trains and trucks headed to grocery stores.
Fuel accounts for roughly 15 percent to 30 percent of the total cost of food, according to the Independent Grocers Alliance, a grouping of 7,500 global supermarkets. So higher diesel costs often result in more expensive groceries, although it can take a while for energy shocks to wind their way through the supply chain.
Items that need to stay refrigerated while they’re transported are often the first to see prices rise, according to David Ortega, a professor of food economics and policy at Michigan State University. In July, for example, overall U.S. grocery prices were up 2.7 percent compared to a year prior, but seafood prices were up 7 percent and fresh fruit prices were up 4.9 percent.
Ortega cautioned other factors can be at play, too. Lettuce also faced higher transportation costs in July, but a drop in demand due to the cyclospora outbreak caused prices to fall.
Still, consumers could feel more of a squeeze the longer diesel prices remain high.
“Early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins,” Ortega explained last week. “But as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.”
Fuel shocks range far and wide
Back in April, e-commerce giant Amazon rolled out a temporary 3.5 percent fuel and logistics surcharge on some third-party sellers. United Parcel Service, FedEx and the United States Postal Service also moved to add fees on some of the packages they ship earlier in the war, citing rising costs for fuel overall.
Experts warn that price hikes could mount the longer diesel remains expensive. A range of other products are also transported by diesel-powered networks, including clothing, cosmetics and furniture.
The ramifications extend beyond consumer goods. Some public transit buses and trains also run on diesel. And diesel generators are often used for backup or emergency power, if not central electricity sources in some remote parts of the world.
Experts warn the consequences could continue to deepen, particularly in African and Asian countries, which rely more on Middle East imports and have already been hit the hardest by energy shocks.
According to the latest data from Global Petrol Prices, diesel prices in Nigeria have surged over 90 percent since late February — followed by nearly 87 percent in Indonesia and 80 percent in Lebanon.
Price tags vary widely between countries, due to factors ranging from fuel taxes to local economic conditions. As of Monday, diesel prices in Nigeria were about $4.95 per gallon (1,730 naira per liter) on average. Meanwhile, the highest sticker price reported by Global Petrol Prices was in Hong Kong, where diesel costs have jumped almost 26 percent during the war and averaged at $17.78 a gallon (nearly 37 Hong Kong dollars per liter) Monday.
A long road of constrained supply — and perhaps higher and higher prices — could be ahead.
S&P Global Energy said Thursday it now doesn’t project crude oil production in the Middle East to return to prewar levels by the end of 2027.
“The market is not returning to calm, it is adjusting to the new normal,” said Jim Burkhard, VP and global head of crude oil research at S&P Global Energy, noting security and logistical challenges continue to limit oil flows.
