On August 13, 2026, a truck driver in Nortrees, Texas, prepared to refuel their semi-truck amid escalating diesel prices. Ongoing international conflicts have disrupted global fuel supplies, notably due to tensions in the Strait of Hormuz and Ukrainian strikes on Russian refineries.
The American Automobile Association (AAA) reports the national average for diesel has surged to $5.85 per gallon, marking an all-time high. The last peak occurred in June 2022 at $5.81, shortly after the Russian invasion of Ukraine. Patrick De Haan from GasBuddy highlights diesel’s critical role in the U.S. supply chain, facilitated through trains, tractors, and trucks.
Diesel costs were $3.76 per gallon before the Iran conflict, reflecting an increase of over $2. De Haan emphasizes the cascading costs, impacting farming and transportation. Diesel fuels approximately 90% of the nation’s 500,000 school buses, adding pressure to school budgets as the academic year begins.
Economic inflation already affects Americans, with a 3.4% rise over the past year, according to the Consumer Price Index. Higher energy prices particularly burden lower-income households, as noted by the Federal Reserve Bank of New York.
Global diesel supplies face additional challenges beyond the Strait of Hormuz bottleneck. In Asia, refining limitations have restricted exports, compounding the shortage. Ukrainian assaults on Russian refineries have led to a reduction in Russia’s diesel exports, prompting imports from countries like India and Belarus.
Another contributing factor is the rising price of jet fuel, with refineries in the U.S. opting to increase jet fuel production due to favorable pricing incentives, thereby reducing diesel output, as explained by Jaime Brito of Dow Jones Energy.
The Importance of Diesel in the Economy
Diesel plays a foundational role in the industrial supply chain. Brito describes it as the economic lifeblood, facilitating the transport of goods, food, and farm products. While gasoline and diesel are both derived from crude oil, they have distinct properties and uses.
Seasonal demand may sustain high diesel prices. Typically, prices climb in the fall during the agricultural harvest, with around 75% of farm equipment running on diesel, according to the Engine Technology Forum. As winter approaches, the demand for heating oil, chemically similar to diesel, further impacts pricing.