Diesel Prices Hit Record Highs at the Pump
Retail diesel has never been this expensive
The national average retail price for diesel reached a record $5.85 per gallon Friday, according to AAA, surpassing the previous high set in June 2022.
The new benchmark represents an increase of more than 55% from late February, before the war involving Iran began. At that time, the national average for diesel was approximately $3.76 per gallon. The price has risen by about $2.10 per gallon since then, adding a significant cost burden for truck drivers, fleets and other businesses that depend on diesel-powered transportation.
AAA’s Friday average was up from $5.78 per gallon Thursday. The latest increase came after diesel prices rose by nearly 25 cents per gallon over the previous four days.
For professional drivers, the impact is immediate. A truck burning hundreds of gallons during a typical week can face substantially higher operating costs even before accounting for maintenance, insurance, equipment payments and other expenses. Fleets generally recover some fuel costs through fuel surcharges, but those adjustments may not move at the same pace as retail prices or fully offset the added expense.
Why prices are rising
The latest increase is tied to disruptions in global energy markets following the start of the conflict with Iran in late February. Iran has effectively closed the Strait of Hormuz, a critical waterway through which roughly one-fifth of the world’s oil normally moves.
The disruption has reduced the flow of crude oil and refined fuel, while also straining refinery operations across the Middle East. Crude oil is the primary raw material used to produce both diesel and gasoline, so interruptions in crude supplies can affect prices throughout the fuel market.
GasBuddy said geopolitical tensions, reduced refining capacity abroad and tight global inventories have contributed to the volatility. The company also noted that diesel now averages more than $2 per gallon above its level in September 2025, when the national average was about $3.70.
U.S. refineries have been operating at high rates as suppliers work to meet demand. However, strong refinery utilization has not eliminated the supply pressure created by blocked Middle Eastern tanker traffic and other disruptions affecting diesel production and distribution.
Wholesale markets have also been volatile
Retail prices typically reflect changes in the wholesale market with a delay. Ultra-low sulfur diesel, the benchmark product used in the pricing chain that leads to the pump, rose sharply during the past month.
The contract settled at about $3.77 per gallon on Aug. 4 and climbed to roughly $4.68 per gallon by Wednesday. It reached its highest level of the week Tuesday, excluding an apparent one-day outlier from 2022. Wholesale prices then softened, falling nearly nine cents Thursday and another roughly 12 cents by late Friday morning.
That decline does not immediately translate into lower retail prices. Fuel purchased by retailers may have been acquired at earlier, higher costs, and transportation and distribution expenses also influence what drivers pay at the pump.
Additional pressure has come from disruptions affecting Russian refining operations. Successful Ukrainian drone strikes on Russian refineries have affected facilities that are heavily oriented toward producing middle distillates, including diesel.
Gasoline prices are climbing, too
Diesel is not the only fuel affected. AAA reported that the national average price for gasoline reached $4.15 per gallon Friday, an increase of nearly 40% since the start of the war.
Higher gasoline prices raise costs for commuters and consumers, while diesel increases affect freight transportation at nearly every stage of the supply chain. Trucks move food, household products, industrial materials and fuel itself, meaning higher fuel expenses can eventually place upward pressure on the prices of transported goods.
The effect may be especially visible in grocery distribution. Supermarket profit margins are already under pressure, and higher trucking costs add another expense for shipments moving from farms, manufacturers and distribution centers to stores.
What it means for trucking
For carriers and independent truckers, the record average reinforces the importance of tracking fuel costs by route and load rather than relying only on the national price. Retail prices vary by state and region, and the cost difference between fueling locations can become significant over a long haul.
Fuel surcharges may help recover part of the increase, but they are usually based on formulas or weekly price indexes that do not always match the price paid at an individual truck stop. Independent drivers also must account for deadhead miles, idling, traffic and route changes when estimating the true fuel cost of a load.
Whether prices ease will depend on the availability of crude oil and refined diesel, the condition of global shipping routes and the ability of refineries to maintain output. For now, the AAA average of $5.85 per gallon marks the highest retail diesel price recorded in the United States and leaves the trucking industry operating under one of its most expensive fuel environments on record.
