Diesel Prices Soar Amid Global Supply Shortages

Diesel prices are surging in the United States as global supplies tighten. According to recent data, the national average on-highway diesel price reached $6.285 per gallon on September 14, a nearly 70% increase from the same week last year. This jump is largely due to disruptions in the global energy markets, including the closure of the Strait of Hormuz and attacks on infrastructure by Houthi rebels.

The average farm diesel price has also climbed sharply, reaching $5.45 per gallon on September 4, up from $3.02 a year earlier. This increase is compounded by rising fertilizer prices, adding to the already tight budgets of farmers.

USDA forecasts that farm fuel and oil expenses will reach approximately $22 billion in 2026, up nearly 29% from 2025. Despite increased grain prices, farmers are expected to operate below breakeven once again, potentially carrying over into the 2027 crop year.