US Diesel Prices Surge as Global Supplies Tighten
The American Farm Bureau Federation reports that diesel prices are surging as global supplies tighten. The national average on-highway diesel price has increased by nearly 70% year-over-year, reaching $6.285 per gallon in September 2026. This increase is attributed to several disruptions in the global energy markets, including the closure of the Strait of Hormuz and attacks on infrastructure by Houthi rebels in the Red Sea.
The average farm diesel price has climbed sharply, reaching $5.45 per gallon on September 4, up from $3.02 a year earlier - an increase of about 80%. This rise is due to several factors, including rising fertilizer prices and tight global supplies.
US distillate inventories remain low, providing little cushion against market disruptions. Crude oil prices have increased by about 14% since the beginning of September, reaching over $100 a barrel in September. Diesel prices also reflect refinery capacity, inventories, and demand for the finished product.