Rising diesel costs ripple through food, transport and energy prices across the U.S.
Diesel prices have surged to $6.59 per gallon, driving up costs for food, freight, public transit and energy, as geopolitical tensions strain global oil supplies.
National average diesel reached $6.59 per gallon, according to the Energy Information Administration, reflecting a $2.78 increase from the same week a year earlier. Ongoing wars involving the United States and Iran, as well as Russia and Ukraine, have curtailed crude oil shipments and refinery capacity, limiting diesel availability. The price spike is affecting sectors that rely heavily on diesel, including farming equipment, refrigerated trucks, long-distance freight, and diesel-powered buses and trains, leading to higher consumer prices for food and goods.
Prices vary regionally, with California topping $8 per gallon due to limited refinery connections and stricter fuel standards, while the Gulf Coast sees lower prices around $6.03. Federal diesel tax is 24.4 cents per gallon, but state and local taxes differ, influencing regional costs. Proposals such as a U.S. diesel export ban, supported by some Republicans and President Donald Trump, aim to lower domestic prices but carry risks to refinery output and global markets.
Why it matters
Higher diesel costs raise everyday prices for food, transport and energy, affecting households nationwide.
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