US Diesel Prices Hit Record High of $5.85

Diesel hit a new record price in the US on Friday, soaring to an average of $5.85 a gallon for the first time ever as the six-month war with Iran disrupts the world's flow of fuel. Because diesel is used for many freight and delivery networks, higher diesel prices mean higher transportation costs for a long list of everyday goods, the AP reports. More expensive fuel is increasing bills for businesses across sectors—some of which have already passed off costs to consumers in the form of added fees on online orders and packages in the mail. And shoppers may see more and more sticker shock trickle onto store shelves.

The increases could have political implications, with economic issues likely to be top of mind for many voters in November's midterm elections. One of the most immediate strains falls in the grocery aisle, particularly with produce, meat, and other perishable foods that need to be hauled in and restocked frequently—or even harvested using diesel-powered farm equipment. It can take time for all of those costs to trickle down. Still, experts warn that price hikes could mount the longer diesel remains expensive. A wide range of other products are also transported by diesel trucks, trains, and boats. "Diesel sort of runs the US economy," says analyst Dean Croke at DAT Freight & Analytics, per Politico.

• Fuel accounts for roughly 15% to 30% of the total cost of food, according to the Independent Grocers Alliance. Because of this, higher diesel costs often result in more expensive food, although it can take a while for energy shocks to wind their way through the supply chain. Analysts say items that need to stay refrigerated while they're transported are often the first to see prices rise.
• The price for regular gasoline has also been going up, although not as fast as the price of diesel. The average price was $4.15 a gallon, compared with $3.20 at this time last year, according to AAA. The previous Labor Day record was $3.82 on Sept. 3, 2012.

• Before the US and Israel launched their war against Iran in late February, the national average for a gallon of diesel was about $3.76 in the US, per AAA. Prices quickly climbed as the cost of crude oil—the main ingredient in diesel, as well as gasoline—soared amid supply chain disruptions and production cuts across the Middle East, notably with most tanker traffic bottlenecked in the key Strait of Hormuz.
• The last time US businesses and drivers saw sky-high fuel prices was in June 2022, when diesel reached as high as nearly $5.82 a gallon on average, months after the Ukraine war began and world leaders imposed sanctions against Russia, a leading oil producer. When adjusted for inflation, however, prices have been higher in the past. Ahead of the 2008 financial crisis, for example, diesel peaked at about $4.74 a gallon—equivalent to $7.20 in 2026, according to the government's latest data. And 2022's record of nearly $5.82 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 each time they fill up gasoline, too. Ajesh Kapoor, CEO and founder of trucking technology company SemiCab, said trucking and transportations can adapt to rising diesel prices—but at some point there is a limit. "Diesel price has a very, very direct impact on everything that moves on pretty much any mode," Kapoor said.