US Diesel Prices Hit Record $5.85 Per Gallon

Retail diesel prices in the United States reached a record nationwide average of $5.85 per gallon on September 4, 2026, surpassing the previous peak from June 2022. The surge is driven by a global supply crunch resulting from a six-month war between the United States, Israel, and Iran, which has bottlenecked tanker traffic in the Strait of Hormuz and pushed Brent crude prices above $95 a barrel. This crisis is compounded by the Federal Government of Russia extending a diesel export ban following Ukrainian drone strikes on Russian refineries in August.

The price spike occurs as US distillate stockpiles hit record lows just before peak demand for harvesting and heating seasons. In response, logistics companies including Amazon, UPS, FedEx, and the United States Postal Service have implemented fuel surcharges to offset rising operational costs. Regular gasoline has also risen to an average of $4.15 per gallon.

President Donald Trump has urged refiners to increase output and threatened to hit Iran hard, though fuel-makers report that refineries are already operating at maximum capacity. The economic pressure threatens to increase energy-driven inflation, potentially complicating Federal Reserve efforts to stabilize prices ahead of its mid-September meeting and creating political challenges for the White House two months before midterm elections.