Diesel prices reach record high, raising costs across the supply chain

The national average price for diesel reached a record $5.85 per gallon, surpassing the previous high of $5.81 set in June 2022, according to AAA. Diesel cost $3.76 before the war with Iran began, putting the increase at more than $2 per gallon.

Diesel fuels much of the nation’s transportation, farming and freight operations. Higher prices could raise costs for food, farm equipment and other goods, while also stretching school district budgets because most school buses run on diesel.

Supply constraints linked to refinery disruptions, reduced exports and shifting production toward jet fuel have contributed to the increase. Seasonal demand tied to the fall harvest and winter heating could keep diesel and heating oil prices elevated for months.

Read the full story at michiganpublic.org.