The average price of diesel gas on Wednesday hit its highest level since the Iran war started, as a global supply bottleneck tightens and seasonal demand is poised to rise.The fuel that powers everything from boats and trains to farm equipment and 18-wheelers hit $5.69 a gallon nationwide, according to AAA data.
That’s up 33 cents from just a month ago, and 54% from September 2025, when the average price was $3.69 a gallon.The pace of price increases for diesel have been much higher than for unleaded gasoline, which is up about 29% percent from the same period last year.“There are more alarms going off for diesel than for other crude oil products,” said Gregory Brew, an analyst with the Eurasia Group consultancy.
Following a diesel-price surge this summer that was largely due to airstrikes targeting refineries in the Middle East, experts say that now the Ukraine war, and specifically Ukrainian drone strikes on oil refineries inside Russia, is having an equal or even greater effect on diesel prices.The increased cost of producing food this Fall will likely be reflected in prices next Spring.Brandon Bell / Getty ImagesRussia is the world’s second largest exporter of diesel fuel after the U.S., Brew noted.With key Russian oil refineries forced offline, the result has been a massive reduction in Eastern European diesel exports, he said.Meanwhile, U.S.
diesel stockpiles in late August had fallen to seasonal levels not seen since the 1980s, according to the federal Energy Information Administration.As global demand for diesel remains steady, the current supply shock means that refiners in the U.S.
and Canada can charge a premium for their diesel products.Profit margins for major diesel refiners recently hit record highs, according to the EIA.
In response to the market forces, U.S.refiners have increased their exports of diesel and related fuels by approximately 28% over the past 12 months.For major refiners like Valero and Marathon, this has meant a windf...