Key facts
- The average U.S. diesel price hit a record $5.820 per gallon on Thursday.
- This surpasses the previous daily record of $5.819 per gallon from June 17, 2022.
- Geopolitical tensions between the U.S. and Iran, including U.S. strikes on Iranian assets, are contributing to the price increase.
- Global fuel markets are tightened by disruptions from the Middle East and Russia.
- Rising seasonal demand for diesel during harvest and holiday seasons is also a factor.
- The average U.S. gasoline price is $4.125 per gallon.
The average U.S. diesel price hit a record high late on Thursday, exceeding the previous record from 2022, as the Middle East crisis tightened global fuel markets. The national average price of diesel reached $5.820 per gallon, surpassing the previous daily all-time high of $5.819 per gallon on June 17, 2022. Record-high diesel prices are a significant concern for the U.S. economy and inflation, as diesel is essential for economic growth and the transportation of goods. Demand is expected to grow with the upcoming harvest and holiday seasons. Diesel markets globally have tightened due to crippled supply from the Middle East and Russia, rising seasonal demand, and insufficient capacity to compensate for lost flows. Renewed U.S. strikes on Iranian tankers and air defense sites, in retaliation for attacks on commercial shipping and U.S. service members, have escalated conflict and pushed oil prices higher. The IRGC claimed responsibility for attacks on U.S. facilities and shipping. The U.S. has also agreed to a deal with Venezuela to develop oil fields, aiming to lower gas prices. Meanwhile, the national average price of gasoline is $4.125 per gallon, on track for the most expensive Labor Day weekend ever.