US diesel prices hit a record high, pushing up transportation costs for a long list of goods

Diesel hit a record price in the U.S. on Friday, soaring to an average of $5.85 a gallon for the first time as the six-month war with Iran disrupts the world’s flow of fuel.

Because diesel is used for many freight and delivery networks, higher diesel prices mean higher transportation costs for a long list of everyday goods. Some businesses have already passed costs on to consumers through added fees on online orders and packages in the mail. And shoppers may see more and more sticker shock trickle down to store shelves.

One of the most immediate strains is being felt in the grocery aisle, particularly with produce, meat, and other perishable foods that need to be hauled in and restocked frequently — or even harvested using diesel-powered farm equipment. Diesel trucks, trains, and boats also transport a range of other products, including clothing, cosmetics, and furniture.

In Minnesota, the average price of diesel reached $5.73 per gallon, up from $5.15 a gallon just a month ago, according to motor club AAA.

The price of regular gasoline has also been rising, though not as fast as diesel. The average price across the U.S. was $4.15 a gallon, compared with $3.20 at this time last year, according to AAA.

AAA says gas has never been above $4 a gallon on Labor Day and that this weekend is on track to set a record at the pump.

Comparison of national gas prices | AAA

What’s driving the latest jump for diesel

American diesel prices are now nearly 56% more expensive than they were before the U.S. and Israel launched their war against Iran in late February, when the national average sat at about $3.76 per gallon, according to AAA. Prices quickly climbed as the cost of crude oil — the main ingredient in diesel, as well as gasoline — soared amid supply chain disruptions across the Middle East, notably with most tanker traffic bottlenecked in the key Strait of Hormuz.

Despite prices cooling somewhat during hopes for peace earlier in the summer, oil has now renewed its climb as fighting once more escalates between the U.S. and Iran. Brent crude, the international standard, was trading at more than $95 a barrel Friday, up from roughly $70 before the war. Prices at the pump always follow closely behind.

The last time businesses and drivers saw sky-high fuel prices was in June 2022, when diesel averaged nearly $5.82 a gallon months after the Ukraine war began and world leaders imposed sanctions on Russia, a leading oil producer.

When adjusted for inflation, however, prices have been higher in the past. Ahead of the 2008 financial crisis, for example, diesel hit about $4.74 a gallon — equivalent to $7.20 in 2026, according to the government’s latest data. And 2022’s record of nearly $5.82 would be about $6.56 this year when accounting for inflation.

That doesn’t take away the pain of today’s steep prices, which are already creating ripple effects across the economy and the wider cost of living.

The average $4.15 for a gallon of regular unleaded is up from $2.98 before the Iran war (an over 39% jump), though still well below the 2022 peak of nearly $5.02 a gallon nationwide.

Diesel has been more expensive than gasoline in the U.S. for decades, and its price has risen at a faster pace before. Some reasons include less flexibility in demand and diesel’s position in global commerce overall. Individual households may find ways to drive less when gas prices are high, for example, but there are fewer immediate substitutes for networks that rely on diesel to haul goods worldwide.

All eyes on food

Diesel is integral to every part of the food supply chain. It powers farm equipment and fishing boats as well as the trains and trucks headed to grocery stores.

Fuel accounts for roughly 15% to 30% of the total cost of food, according to the Independent Grocers Alliance, a grouping of 7,500 global supermarkets. So higher diesel costs often lead to more expensive groceries, although it can take a while for energy shocks to work their way through the supply chain.

Items that need to stay refrigerated while they’re transported are often the first to see prices rise, according to David Ortega, a professor of food economics and policy at Michigan State University. In July, for example, overall U.S. grocery prices were up 2.7% from a year earlier, but seafood prices were up 7%, and fresh fruit prices were up 4.9%.

Ortega cautioned other factors can be at play, too. Lettuce also faced higher transportation costs in July, but a drop in demand due to the cyclospora outbreak caused prices to fall.

Still, consumers could feel more of a squeeze the longer diesel prices remain high.

“Early on, much of the cost increase gets absorbed along the supply chain through existing freight contracts and retailer margins,” Ortega said. “But as contracts reprice and fuel surcharges take hold, more of that cost makes its way to the grocery store.”

Associated Press September 4, 2026