Diesel Hit $5.85 a Gallon on Friday. That Is the Highest Price Ever Recorded in the United States.
The six-month war with Iran has scrambled global fuel flows, and diesel moves nearly everything Americans buy. Grocers say fuel is 15 to 30 percent of what food costs to deliver.
The national average price of diesel reached $5.85 a gallon on Friday, the highest figure ever recorded in the United States, as the war with Iran continues to disrupt the movement of fuel around the world. The previous nominal record, nearly $5.82 a gallon, was set in June 2022 in the months after Russia invaded Ukraine.
The climb has been steep and fast. Diesel averaged roughly $3.76 a gallon in late February, before the fighting began. Brent crude, the international benchmark, traded above $95 a barrel on Friday, up from about $70 before the war. Gasoline has followed, averaging $4.15 a gallon against $3.20 a year ago. Drivers had never seen gasoline above $4 on a Labor Day weekend until this year.
Diesel matters more than its price at the pump suggests, because almost nothing in an American store arrives without it. Trucks, trains, container ships and delivery vans all burn it. "Diesel price has a very direct impact on everything that moves on pretty much any mode," said Ajesh Kapoor, chief executive of the logistics firm SemiCab.
The Independent Grocers Alliance, which represents about 7,500 supermarkets worldwide, estimates that fuel accounts for roughly 15 to 30 percent of the total cost of food. That arithmetic is already visible on shelf tags. Grocery prices rose 2.7 percent in July from a year earlier, with seafood up 7 percent and fresh fruit up 4.9 percent.
Companies have started pushing the cost onto customers directly rather than burying it in prices. Amazon added a temporary 3.5 percent fuel and logistics surcharge on some third-party sellers in April. UPS, FedEx and the US Postal Service have each layered on package fees, citing operational costs. Consumers see the result as line items on orders they used to think of as free shipping.
Analysts are skeptical the current level holds indefinitely, in either direction. "This cannot go on forever," said Neil Atkinson, a senior fellow at the National Center for Energy Analytics, pointing to the strain on refining and distribution systems that were never built to route around a closed Strait of Hormuz.
For historical perspective, the record is nominal rather than real. Diesel peaked at about $4.74 a gallon ahead of the 2008 financial crisis, which works out to roughly $7.20 in 2026 dollars. Prices did ease for part of the summer, when talk of a peace deal briefly took the risk premium out of crude, but oil resumed its climb as fighting between the United States and Iran escalated again in recent weeks.
The practical effect lands hardest on independent truckers and small fleets that buy fuel at retail and cannot hedge. A long-haul rig burning 20,000 gallons a year now faces roughly $42,000 in additional annual fuel cost compared with late February, before a single mile of that increase is passed down the chain.
Originally reported by Associated Press.