Diesel Price Surge Wreaks Havoc on US Economy

High diesel prices are rippling across the US economy, with national average prices reaching $6.52 per gallon as of September 14, 2026. This is a 3.6% increase from the previous week and a 74% rise since the same time last year.

The global supply chain disruptions caused by the US-Iran conflict and Russia's war with Ukraine have led to reduced oil production, refinery output, and petroleum supply chains worldwide. The near-complete closure of the Strait of Hormuz has further exacerbated the situation, reducing crude oil flows across the globe.

As a result, diesel fuel is in short supply, leading to higher prices. This affects various sectors, including farming, trucking, public transit, and energy systems. Farmers may restrict or postpone planting and harvesting due to high fuel costs, while trucking companies face increased operating costs that are passed on to consumers.

Public transit also faces a double whammy: direct increases in fuel costs and higher demand as people shift to public transportation to save money. Air fares have become more expensive due to the same production process being used for diesel and jet fuel. Energy systems, including backup generators, are also affected by the shortage of crude oil supplies.