Marketplace · Thursday, July 30, 2026
Diesel fuel prices have climbed to an average of $5.34 a gallon, nearing AAA's all-time record, primarily due to geopolitical tensions and supply chain disruptions. An abandoned truce between the US and Iran, bombings of Russian refineries, and damage to Saudi Aramco facilities have limited exports and tightened markets. These higher prices are passed through the economy, affecting everything from groceries to construction.
“Diesel fuel is in especially short supply, thanks to geopolitics.”
“Diesel was disproportionately affected because diesel is the refined product of one of the major refined products that is most exported out of the Middle East gulf.”
“The economy runs on diesel. The grocery stores, the construction site I have out my window.”
“Those higher prices get passed through quickly. It gets passed through to the farmer, to the trucker, to the restaurant. It's there, and it's always there.”