US diesel prices climb to highest level since 2022
US diesel futures rose above $5 per gallon on September 10 for the first time since April 2022 amid tightening fuel supplies on the global market. In New York, prices reached as high as $5.03 per gallon, equivalent to around $210 per barrel.
The price increase has been driven by escalating tensions in the Middle East and risks to fuel shipments through the Strait of Hormuz. Additional pressure is coming from Russia’s fuel export ban through the end of September, prompting buyers to seek alternative supplies.
Retail diesel prices in the US have also risen sharply. According to the American Automobile Association, the national average reached $5.98 per gallon as of September 9, a record high. In California, the average price climbed to $7.91 per gallon, while some stations were listing prices close to $10.
Higher diesel prices could significantly increase costs for the agricultural sector, as the fuel is widely used in farm machinery and freight transportation. Major agricultural states such as Kansas and Iowa are particularly exposed to rising fuel costs.
Oil product shipments through the Strait of Hormuz are gradually recovering but remain well below pre-war levels. Against this backdrop, the US has become one of the key alternative diesel suppliers, drawing domestic inventories down to their lowest seasonal level heading into September.
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