US Diesel Prices Hit Record $6.28 per Gallon Amid Supply Crunch
US diesel prices have reached an all-time high of $6.28 per gallon on September 14, 2026, due to a national average that is unlikely to come down anytime soon.
The effects of this supply crunch are set to spread across the entire US economy, particularly in transportation, farming, and construction sectors.
Two key factors contributing to the high prices are environmental protection regulations on oil refineries and Russia's war with Ukraine. However, it is the ongoing US war against Iran that has pushed the situation into a crisis by closing the Strait of Hormuz to a large percentage of oil and refined products shipments for over six months.
US oil refineries are making significant profits as diesel prices have risen sharply since the start of the war. In January 2026, before the US and Israel's attack on Iran, the average diesel price in the US was $3.52 per gallon, which means that diesel prices have jumped more than 78% since then.
The country's refining capacity has been declining for years due to regulations requiring refiners to produce diesel fuel with lower sulfur levels. This increase in costs and reduced production has resulted in a shortage of diesel fuel, leading to high prices and large profits for refineries.