U.S. Diesel Reaches $6.285 Per Gallon as Hormuz Disruption and Refinery Constraints Tighten Distillate Supply, Spreading Cost Pressure Across Freight and Consumer Goods

U.S. diesel prices crossed $6 per gallon for the first time ever, reaching a national average of $6.285 per gallon as of September 14, according to the Energy Information Administration's weekly Gasoline and Diesel Fuel Update. This represented a 31.8-cent jump from the prior week and $2.55 higher than the same week a year ago. All regions across the country surpassed $6 per gallon, with California exceeding $8 per gallon. The September 14 reading set a new all-time high in the series dating to 1994, surpassing the prior nominal weekly peak of $5.81 set in June 2022. The surge reflects tight global distillate markets driven by the ongoing Iran war and Middle East supply disruptions. The EIA forecast in its September outlook that U.S. distillate fuel oil inventories will drop below 100 million barrels in September and remain below the five-year low through much of 2027, as tightness in the global distillate market raises domestic prices and incentivizes U.S. exporters to increase distillate exports. Spot freight rates for dry van and refrigerated equipment rose modestly during the week ended September 11 despite the surging diesel prices, which essentially wiped out the gains—fuel-adjusted rates fell about 7 cents week-over-week and were down close to 36 percent year-over-year, according to Truckstop.com data. Higher diesel prices are spreading cost pressure across the economy, as diesel powers freight, delivery networks, agriculture, construction, and rail. Some businesses have already passed steeper costs to consumers through added fees on online orders and packages. The record diesel pricing—combined with elevated gasoline averaging $4.29 per gallon for regular unleaded—is deepening strain for hauling everyday goods, with shoppers likely to feel more sticker shock particularly in the grocery aisle. Year-to-date through September 7, diesel averaged $4.90 per gallon; to exceed the 2022 annual record of $4.99, diesel would need to average about $5.20 over the remai