Soaring U.S. Diesel Prices Squeeze Schools, Farms and Food Banks

By sterlingashworth // 2026-09-30

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Average U.S. diesel prices hovered around $6.50 a gallon on Friday, just below the record high of $6.53 set on Sept. 22 and up from $3.69 a year earlier, according to AAA data cited in reports [1]. The national average first crossed the $6 mark in September, exceeding the prior peak of $5.82 per gallon set on June 17, 2022, following Russia's invasion of Ukraine [2]. The increase is raising operating costs for school districts, farmers, construction firms, food banks, and delivery truck operators, according to CBS News reports. Officials and business owners said they are seeking ways to cut costs or pass higher fuel expenses on to customers. Diesel is the primary fuel for commercial trucking, agriculture, construction, rail, and maritime freight, meaning the record price filters through the cost of nearly every good that moves by road or rail [1]. Diesel powers about 66 percent of freight trucks, agricultural equipment, trains, and ships, embedding its cost in the price of virtually every physical product [3].

School Districts Weigh Route Cuts as Bus Fuel Costs Rise

Cherry Creek Schools in Colorado relies on diesel to power more than 300 buses that transport roughly 24,000 students across the district. The district is facing an additional $500,000 in diesel costs this year, pushing its total fuel budget to about $2 million, compared with the $1.5 million it had originally budgeted, director of transportation Mark Ingram told CBS News Denver. Ingram said the district is weighing consolidating some routes and scaling back certain activity trips to save fuel costs. Colorado diesel prices now average $6.16 per gallon, compared with $3.51 a year ago, according to AAA data. Raptor Roll Offs, a Colorado waste management and dumpster rental business that uses diesel trucks in the Denver area, may need to pass higher fuel costs on to customers, owner George Dempsey told CBS News Denver. "We're holding on as long as we can," Dempsey said. "We can't absorb it all ourselves, and so you have this trickle effect."

Farmers and Food Banks Report Higher Operating Expenses

The Atlanta Community Food Bank said it will spend an extra $100,000 this year on diesel, money that otherwise would have gone to feed families, according to supply chain officer Kenneth Hill. "That would actually translate to about 122,000 meals that we would be able to provide if we didn't have to spend that on unexpected diesel fuel prices," Hill told CBS News Atlanta. Georgia diesel prices averaged $6.32 a gallon on Friday, up from $3.54 a year ago, according to AAA. Ranchers rely on diesel-powered trucks and water pumps, and Andrew Coppin, CEO of Ranchbot, told CBS News that diesel is the single biggest input into many farming operations outside of labor. "If it's an F-250, a Ram 2500 or a Silverado, we're talking 1-ton diesel trucks, and on a good day they are getting 12 miles to a gallon," Coppin said. He noted his company has seen a major increase in inquiries from ranchers due to surging diesel prices. Marty Gray, owner of Gray Farms in Watseka, Illinois, told CBS News Chicago that he is thinking about diesel when he wakes up in the morning, and about the trucks running and the grain elevator. Gray said his family-owned farm is facing tight margins as harvest season gets underway and is trying to decide whether to fill fuel tanks now or wait. The cost of diesel hit a record high of nearly $6.61 a gallon this week, and farm equipment that last year cost $70 to $80 an hour to run now costs about $180 to $200 an hour, according to figures shared by the Pennsylvania Farm Bureau [4].

Diesel Costs Feed Into Inflation and Freight Expenses

Diesel is widely used in commercial trucking, agriculture, and construction, and rising prices can increase the cost of transporting goods across the country, according to economists. Gasoline prices have also risen, though not as much as diesel, which is facing a global shortage tied to shipping and refining disruptions stemming from the Iran and Russia-Ukraine wars, according to the CBS News report. Inflation could jump to 3.6 percent by year-end due to the rise in fuel prices, according to EY-Parthenon chief economist Gregory Daco. Inflation rose in August at an annual rate of 3.4 percent, up from 2.4 percent at the beginning of 2026, the report stated. Bernard Yaros, lead U.S. economist at Oxford Economics, said in a report that higher diesel and freight expenses risk bleeding into core inflation by raising the cost of producing and transporting consumer goods. Yaros said prices for grocery store items, restaurants, and delivery services are the most sensitive to higher diesel prices. A separate report from the International Monetary Fund warned that the war in the Middle East has delivered a "major global energy supply shock" that will push up prices and force a downgrade to world economic growth, according to Managing Director Kristalina Georgieva [5].

Export Ban Proposal Draws Mixed Assessments

Some Republican lawmakers are calling for the U.S. to ban diesel exports to lower costs. The U.S. refines more diesel than it can use domestically, with energy companies selling the remainder abroad, according to the CBS News report. Senate Majority Leader John Thune told reporters in September that he is "open to exploring" a diesel export ban as the national average price continued to set new highs [6]. Energy experts and economists said an export ban might initially lower diesel costs in some U.S. regions but could eventually backfire by worsening global shortages and sending prices higher. Oxford Economics said in a report that price declines would be concentrated in the Gulf Coast and Midwest, where most refining capacity is located, while distillate shortages are concentrated in the Northeast and West Coast, and those regions would see little benefit. More than 30 U.S. business, energy, and manufacturing groups urged President Donald Trump in September to reject restrictions on diesel exports, warning that the move could reduce fuel production and raise costs for American consumers. "Export bans would lead to less fuel production, tighter supplies, and rising costs," the groups said in their appeal [7]. Energy Secretary Chris Wright, speaking on the sidelines of the United Nations General Assembly, said he favors voluntary limits on diesel exports instead of an outright ban, telling the Journal that "we're trying to avoid a blunt hammer of a government policy, understanding the complexity of refining" [8].

References

NaturalNews.com. "Brace For Impact: Diesel Costs Top $6.50 A Gallon Amid Worsening Supply Disruptions". NaturalNews.com. September 22, 2026.
NaturalNews.com. "U.S. Average Diesel Prices Cross $6 a Gallon for First Time, GasBuddy Says". NaturalNews.com. September 13, 2026.
Ava Grace. "The $5 Gallon That Could Break America". NaturalNews.com. March 19, 2026.
Just the News. "Farmers face 'a lot of uncertainty' as record diesel prices squeeze operations". JustTheNews.com. September 25, 2026.
Sterling Ashworth. "IMF Reports Major Energy Supply Shock, Growth Downgrade Following Middle East Conflict". NaturalNews.com. April 14, 2026.
ZeroHedge. "Thune 'Open To Exploring' Diesel Export Ban As Skyrocketing Prices Raise Fears Of 2008-Style Shock". ZeroHedge.com. September 15, 2026.
The Epoch Times. "US Industry Groups Urge Trump to Reject Diesel Export Ban". TheEpochTimes.com. September 24, 2026.
NaturalNews.com. "U.S. Energy Secretary Rejects Outright Diesel Export Ban, Favors Voluntary Limits". NaturalNews.com. September 26, 2026.
Chris Martenson. "Energy Shock Inflation And Market Complacency What Wins". PeakProsperity.com. April 3, 2026.
ZeroHedge. "Dies-aster: California Diesel Nears $10 A Gallon As Global Fuel Crisis Deepens". ZeroHedge.com. September 11, 2026.
NaturalNews.com. "Analytical Report: Global Ramifications of US Invasion and Occupation of Venezuela 2026". NaturalNews.com. January 6, 2026.

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