The average price of diesel in the United States has passed $6 a gallon for the first time, intensifying pressure on transport, farming and construction businesses and increasing the likelihood that higher fuel costs will reach consumers.
AAA data cited by CBS News put the national average at a record $6.05 on Friday, up more than 60% from $3.71 a year earlier. California's average reached $7.98, the highest state figure, while the nationwide gasoline average rose to $4.29.
Diesel occupies an unusually important place in the economy because it powers much of the equipment and transport used to move goods. Trucks, trains, farm machinery and construction equipment all depend heavily on the fuel. A sustained increase therefore affects businesses that do not sell energy directly but must pay to move products, operate machinery or refrigerate food.
Economists said many companies had so far absorbed the increase through existing supplier contracts or profit margins. That buffer may weaken when contracts are renewed and large buyers face new fuel surcharges. Thomas Ryan of Capital Economics said households were likely to contend with the effects through at least the rest of the year if prices remain high.
Pressure is already visible in producer data. The US Department of Labor reported that diesel's 24.1% monthly increase accounted for more than a third of August's rise in goods prices for producers. Patrick De Haan of GasBuddy said the effect on consumers would become more apparent if elevated prices persist beyond roughly six weeks, when major users must make large purchases at the new rates.
The report attributed the surge to disrupted oil supply during the war in Iran and to constrained refining capacity in the Middle East and Russia. Brent crude rose to $108 a barrel as fighting between the United States and Iran escalated. Ukrainian drone attacks have also reduced Russian refining capacity, limiting potential diesel exports into an already tight global market.
Those constraints help explain why diesel has risen faster than gasoline. S&P Global Energy analysts said they no longer expected worldwide oil production to return to prewar levels by the end of 2027, suggesting the imbalance could extend beyond a short-lived price shock.
If businesses begin passing costs through, the impact will vary by product. Refrigerated foods transported over long distances, including seafood and fresh produce, are particularly exposed. Furniture, vehicle delivery charges and other bulky goods could also become more expensive, while local products and nonperishable food may be less sensitive.
The record price is therefore more than a burden for drivers of diesel vehicles. Its broader significance depends on duration: a brief spike could be absorbed unevenly, but a prolonged squeeze would feed through contracts and supply chains, adding another source of inflation for households and businesses.
