The average price of diesel in the United States hit a record high of $5.85 per gallon today as the more than six-month-long war with Iran disrupted global fuel supplies, the Associated Press reported, BTA reported.
The price hike is pushing up the cost of producing and transporting a wide range of goods, including food, clothing and furniture. Some companies are already passing on the extra costs to consumers through delivery surcharges and higher final prices.
Before the start of the U.S.-Israeli strikes on Iran in late February, the average price of diesel in the United States was about $3.76 per gallon, according to data from the American Automobile Association (AAA). One US gallon is equal to approximately 3.785 liters.
The previous nominal record was set in June 2022, when diesel averaged nearly $5.82 per gallon after the start of the war in Ukraine and the imposition of sanctions against Russia.
However, prices have been higher in the past after adjusting for inflation. The peak of about $4.74 per gallon in 2008 is equal to about $7.20 in 2026 prices, and the record in 2022 is about $6.56, according to government data.
Regular unleaded gasoline is also rising in price, but at a slower pace than diesel. Its average price reached $4.15 per gallon, up from $2.98 before the Iran war and $3.20 at the same time last year. The price of unleaded gasoline remains below a record of nearly $5.02 in 2022.
The rise in fuel prices followed the rise in crude oil prices due to supply disruptions and production restrictions in the Middle East. The blockade of much of the tanker traffic through the Strait of Hormuz has had a particularly strong impact.
After a slight decline earlier in the summer amid hopes for peace, oil prices rose again with the renewal of clashes between the United States and Iran. Today, Brent was trading above $95 a barrel, compared to around $70 before the war.
Among the sectors most affected is the food industry. Diesel is used in both agricultural machinery and fishing boats, and to transport produce to stores.
According to the Independent Grocers Alliance, which includes 7,500 supermarkets worldwide, fuel accounts for approximately 15 to 30 percent of the total cost of groceries.
Products that require refrigeration during transportation are often the first to see price increases, said David Ortega, a professor of food economics and policy at Michigan State University.
In July, U.S. grocery prices were an average of 2.7 percent more expensive than in the same month last year. Seafood prices rose 7 percent, and fresh fruit rose 4.9 percent. Ortega said that other factors besides transportation costs are also affecting prices.
“Initially, much of the cost increase was absorbed by the supply chain through existing transportation contracts and retailer margins. But as contracts were recalculated and fuel surcharges were imposed, more and more of those costs were passed on to grocery stores,“ he said.
In April, Amazon introduced a temporary 3.5 percent fuel and logistics surcharge for some third-party sellers. Courier service providers UPS and FedEx (FedEx), as well as the US Postal Service, have also taken measures to charge additional fees on some shipments due to rising operating costs.
The possibilities for limiting diesel consumption are smaller than for gasoline. While households can reduce their trips, transport and manufacturing companies have fewer immediate alternatives.
The consequences also affect public transport, as well as the use of diesel generators for backup or primary power supply.
Experts warn that the pressure could intensify, especially in countries in Africa and Asia, which are more dependent on fuel imports from the Middle East.
Energy analyst Neil Atkinson pointed out that refined petroleum products are also becoming more expensive due to dwindling inventories. He said the combination of high prices and shrinking physical inventories is putting the global refining system under increasing pressure.
The price hike could also have political repercussions in the United States, where the cost of living is expected to be a hot topic ahead of the November midterm elections.