The fuel used by trucks, farms, trains and heavy machinery is facing pressure from a global supply squeeze. According to the AAA motor club, diesel prices on Wednesday were 53 percent higher than a year earlier, creating higher costs for businesses that depend on fuel to move goods and operate equipment.
Diesel plays a different role from gasoline because it is mainly used by companies and industries rather than individual drivers.
Global Disruptions Reshape the Diesel Market
The current rise in diesel prices reflects reduced fuel availability across international markets. Refineries produce diesel, gasoline, jet fuel and other products by processing crude oil, and disruptions at major production centers have affected supply.
According to S&P Global, Russian refinery operations have been heavily affected by Ukrainian drone strikes. In July, analysts at Bank of America said Russian refineries were processing around 3.9 million barrels per day, compared with 5.3 million barrels a year earlier. Russia has since suspended diesel exports.
“The reason that that’s important is it’s a global market,” said Debnil Chowdhury, who tracks the refining sector for S&P Global. He estimated that about 40 percent of Russian refining capacity had been affected by drone strikes.
The flow of oil and fuel products has also been affected by restrictions around the Strait of Hormuz, a major shipping route for crude oil. According to S&P Global analysts, crude oil refined in the Middle East fell to about eight million barrels per day in 2026, down from 2025 levels by 1.6 million barrels per day.
U.S. refineries have responded by operating at around 97 percent of capacity, according to the Energy Information Administration. Diesel and related fuel exports have risen by about 28 percent compared with the previous year, while domestic inventories have fallen.
Higher Costs Pressure Farmers and Trucking Companies
The impact of higher diesel prices is being felt by businesses that rely on fuel-intensive operations. On a farm in Iowa, Randy Madden delayed purchasing diesel when prices began rising but now expects to spend more than $40,000 on fuel during harvest season, roughly twice his usual cost for that period.
Farmers depend on fuel alongside other operating expenses such as repairs, seeds and fertilizer. John Boyd, founder of the National Black Farmers Association, said higher costs have placed pressure on some farmers’ budgets.
The trucking sector is also facing higher expenses. Large logistics companies can often transfer fuel costs to customers, while independent operators may have fewer options. “It really just eats into your operations because you basically break it out into what is my cost per mile traveled,” said Zach Miller, vice president of government affairs at the Trucking Association of New York.
Refineries are benefiting from the current market conditions. According to Goldman Sachs’ Struyven, U.S. refineries that sell diesel are earning close to $90 per barrel, compared with typical earnings of $20 to $30 per barrel when oil prices are around $70.
Expanding diesel production remains difficult because new refineries require years of construction and large investments. The last U.S. refinery was built in 1977, according to the Energy Information Administration. Growth in refining capacity has shifted toward countries such as India and Nigeria, where new projects are adding production capacity.
