U.S. Businesses and Households Face Heat as Diesel Prices Soar

WASHINGTON, Sept. 19, 2026 — U.S. diesel prices have reached record levels, raising operating expenses for businesses that rely on diesel-powered trucks, farm equipment and heavy machinery. The higher prices are also affecting households. The national average price for on-highway diesel reached $6.285 a gallon on Sept. 14, according to the U.S. Energy Information Administration (EIA). It was the highest nominal price in the EIA’s series, which began in 1994.

Diesel powers trucks, trains, ships, farm equipment and heavy machinery across the United States. These vehicles and machines move goods, harvest crops, operate at construction sites and perform other work throughout the economy. When diesel prices climb, the businesses that rely on this equipment face higher fuel bills, while higher transportation charges can also affect the cost of goods.

Agriculture

Farmers are facing higher diesel bills during the harvest season because tractors, combines and other farm equipment use diesel. South Dakota farmer Drew Peterson told Reuters he expects to spend about $1,500 a day to fuel one combine, twice what he spent last year. Reuters also reported that diesel prices exceeded $8 a gallon in parts of California.

Higher diesel expenses increase the cost of harvesting crops and transporting food to grocery stores. Trucking companies use diesel to transport crops, meat and other food products, while refrigerated trucks use diesel to transport perishable goods. Reuters reported that the cost of transporting produce from California was 40% to 120% higher than a year earlier, according to Dean Croke, principal analyst at DAT Freight & Analytics. Food companies and retailers may pass some of those higher transportation charges to consumers through higher prices.

Transportation

Trucking companies face higher fuel expenses when diesel prices rise. Trucking companies can pass higher fuel expenses to customers through higher freight rates and fuel surcharges. Railroads also use fuel surcharges on some shipments. Reuters reported that fuel surcharges on U.S. grain shipments by rail had more than doubled from a year earlier by Sept. 14.

Higher freight charges increase shipping expenses for retailers and other businesses that send products to customers. Parcel carriers also use fuel surcharges that change with diesel prices. Businesses may absorb higher diesel expenses temporarily or pass them on to customers through higher freight rates, delivery fees or product prices.

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Construction

Construction companies use diesel-powered excavators, bulldozers, loaders and other heavy equipment. Higher diesel prices increase the cost of operating that equipment at construction sites and transporting construction materials to job sites.

Contractors can add fuel surcharges to project contracts or account for higher fuel expenses when preparing bids for new projects. Trucks also use diesel to transport steel, lumber, concrete and other construction materials. Higher diesel prices therefore increase equipment operating expenses and material transportation charges for construction companies.

Energy

Diesel prices also affect households that use heating oil. Heating oil is a distillate fuel, like diesel, and the Northeast accounts for most U.S. heating-oil consumption. Higher distillate prices can increase heating expenses for households that use heating oil during the winter. The EIA lists home heating in the Northeast as a major seasonal use of distillate fuel.

If diesel prices remain elevated, higher fuel expenses could increase transportation, food, construction and home-heating expenses over the months ahead. The size and timing of price increases will vary because businesses and households have different contracts, pricing arrangements and fuel needs.

Because diesel powers trucks, farm equipment, construction machinery and other equipment, higher diesel prices can increase operating expenses across several parts of the U.S. economy. Farmers pay more to harvest crops, freight carriers pay more to transport goods, construction companies pay more to operate heavy equipment, and households that use heating oil can pay more to heat their homes.