U.S. diesel hits record $5.82; Iran war adds $97.5B

U.S. diesel set a new record of $5.820 per gallon on Sept. 3, exceeding the prior high of $5.819 from June 17, 2022. Patrick De Haan, head of petroleum analysis at GasBuddy, posted the live price update and has said 2026 is on track to become the most expensive year for diesel in U.S. history. Diesel has traded above $5 per gallon since July 15.

Data from the U.S. Energy Information Administration for the week ending Aug. 28 show distillate inventories about 14% below the five-year average and at their weakest late-August level since 1982. East Coast distillate stocks are at a record low. Refinery utilization was roughly 98% for that reporting week. Diesel crack spreads, a measure of refining margins, have risen above $100 per barrel.

Researchers at Brown University using the Iran War Energy Cost Tracker estimate the conflict, which began Feb. 28, has added $97.5 billion in energy costs for U.S. consumers. That total averages $743.99 per household. Diesel accounts for about $44.14 billion of the tracker’s estimate. The pre-war U.S. diesel national average was about $3.67 per gallon, meaning current prices are roughly 57.6% higher.

Higher diesel costs are expected to affect goods transported by truck and rail. Susan Bell, senior vice president of downstream research at Rystad Energy, cautioned that higher diesel costs will be passed on to consumers and pointed to the transportation of groceries and produce as an example of where costs could appear in everyday prices.

September typically begins peak diesel demand for harvests and preparation for winter heating. The next EIA inventory report, due Sept. 10, will show whether refiners can rebuild distillate stocks before demand rises. Until then, elevated refinery utilization and strong crack spreads indicate tight supplies and high refining margins.