Diesel Prices Surge Past Weekly Record as Annual Average Record Looms
U.S. diesel prices have surpassed their previous weekly record set in June 2022 and are now within striking distance of setting an annual average record for 2026, according to recent data from the U.S. Energy Information Administration (EIA). As of September 7, on-highway diesel jumped 36.8 cents to $5.967 per gallon nationally, surpassing the previous nominal weekly high of $5.810 set in June 2022.
The EIA's latest data shows that regular gasoline rose 8.6 cents to $4.157, still well below its $5.006 weekly peak in June 2022. This divergence between diesel and gasoline prices means that diesel is likely to set a new annual average record for 2026, while gasoline remains below the record it set in 2022.
The petroleum market was already tight before Russia's full-scale invasion of Ukraine in 2022, which led to a surge in crude oil prices. The conflict disrupted global energy flows and tightened an already constrained diesel market. Similar factors are at play this year, with the Strait of Hormuz under pressure due to the Iran conflict and reduced shipments through the strait contributing to higher crude and refined-product prices.
However, it's not guaranteed that diesel will set a new record. A ceasefire or restoration of energy flows through the Strait of Hormuz could bring down crude and refined-product prices quickly, while restored refinery operations in Russia or the Middle East could ease the distillate squeeze. Additionally, a sharp economic slowdown could weaken freight and industrial diesel demand.