Diesel Prices Soar as Global Conflicts Disrupt Supply Chains
High diesel prices are rippling across the US economy, affecting everything from food production to public transportation. The national average price of diesel fuel has hit a record high of $6.52 per gallon, up 23 cents or 3.6% from last week and nearly $2.78 or 74% since the same time in 2025.
The main drivers behind this price surge are the ongoing wars between the US and Iran, as well as Russia's war with Ukraine. These conflicts have disrupted oil production, refinery output, and petroleum supply chains worldwide, leading to a shortage of crude oil supplies and reduced refinery production capacity.
As a result, diesel fuel prices have skyrocketed, affecting various sectors such as farming, trucking, public transit, energy systems, and consumer prices. Farmers may restrict or postpone planting and harvesting operations due to high fuel costs, while trucking companies face increased operating costs that will likely be passed on to consumers.
Some Republicans in Congress have proposed a ban on diesel exports from the US, with President Donald Trump supporting this idea. If implemented, such a ban could help make diesel cheaper, especially near Gulf Coast refineries, but it would also come with risks, including reduced production of gasoline, jet fuel, and heating oil.