Diesel prices rebound squeezes U.S. truckers, drives up freight costs

Gasoline and diesel prices are displayed at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026. Diesel prices are climbing again across the United States due to renewed fighting in the Gulf, pressuring truckers and shippers still recovering from a years-long freight slump and pushing transportation costs higher for consumers. (Photo by Zeng Hui/Xinhua)

LOS ANGELES, July 16 (Xinhua) -- Diesel prices are climbing again across the United States due to renewed fighting in the Gulf, pressuring truckers and shippers still recovering from a years-long freight slump and pushing transportation costs higher for consumers.

The national average diesel price rose above 5.00 dollars a gallon Thursday, up from 3.72 dollars a year earlier, according to the American Automobile Association. Diesel prices rose 6.7 cents from the previous day and nearly 20 cents from a week earlier. The prices are far above the level carriers budgeted for this year.

Federal data tells a similar story. The U.S. Energy Information Administration (EIA) said the average on-highway diesel price was 4.796 dollars a gallon for the week ending July 13, up 21.8 cents from a week earlier and 1.057 dollars higher than the comparable week last year. The weekly government benchmark is closely watched because many trucking contracts use it to calculate fuel surcharges.

The increases have been especially painful on the West Coast. EIA reported California diesel at 6.126 dollars a gallon in the latest weekly survey, while the West Coast average stood at 5.550 dollars. Earlier this year, the California average diesel price reached 7.018 dollars per gallon in March, the highest level recorded in the American Automobile Association's database. U.S. media reports attributed the surge to reduced oil-refining capacity and disruptions in global energy shipments amid the war in Iran.

The jump comes as trucking companies remain under financial strain from weak freight demand, rising equipment costs and higher maintenance bills. Fuel is typically one of the industry's largest variable expenses, and sudden price increases can leave small carriers with little room to maneuver, putting them at risk of going under.

"This spells big trouble for us mom and pop truckers," Los Angeles-based indie trucker, Herb Pounder, told Xinhua. "We are four months into Trump's 'four-week-long' war, and what does America have to show for it besides spiraling prices?"

Another driver, Romero, told Xinhua that diesel prices had only recently fallen, but the on-again, off-again fighting in the Middle East pushed them back up, placing significant strain on his operations.

Dean Croke, principal analyst at freight analytics firm DAT, concurred. "The guys really getting squeezed are the small carriers that can't negotiate a higher rate because demand is still flat."

The pressure is rippling through freight bills. The Department of Energy's Automated Transportation Logistics and Analysis System lists the July 13 diesel price of 4.796 dollars as resulting in a 26 percent less-than-truckload fuel surcharge and a 51-cent-per-mile truckload surcharge for applicable government tenders from July 15 to July 21.

Industry groups say carriers entered the year with little cushion. The American Transportation Research Institute said Wednesday that the average cost to operate a truck reached a record 2.336 dollars per mile in 2025. Excluding fuel, costs increased 4.2 percent to 1.854 dollars per mile, ATRI added.

The institute said carriers responded to the prolonged downturn by cutting capacity, reducing truck counts by 2.4 percent and leaving an average of 10 percent of trucks unseated. If small carriers park equipment rather than operate at a loss, available capacity tightens, and rates can rise even if freight volumes remain uneven.

AFS Logistics CEO Andy Dyer said in a July freight index that "the fuel numbers tell the story." He noted that the second quarter rose about 51 percent compared with January and February levels, forcing smaller truckload carriers to park trucks until fuel prices become more palatable.

When diesel rises quickly, the effect can first appear in fuel-surcharge lines on invoices, then later in product prices if companies pass those costs through, some industry observers noted.

For consumers, that means diesel is not just a price posted at truck stops. It is embedded in groceries, construction materials, e-commerce deliveries and manufactured goods. A sustained increase can become another source of inflation even when gasoline prices receive more public attention.

For policymakers, diesel's renewed climb is a reminder that the cost of moving freight can quickly become a broader economic problem nationwide, something likely to impact the Administration's sagging popularity.

Gasoline and diesel prices are displayed at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.

Diesel prices are climbing again across the United States due to renewed fighting in the Gulf, pressuring truckers and shippers still recovering from a years-long freight slump and pushing transportation costs higher for consumers. (Photo by Zeng Hui/Xinhua)

A driver fills up his truck at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.

Gasoline and diesel prices are displayed at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.

A driver fills up his truck at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.

Gasoline and diesel prices are displayed at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.

A driver fills up his truck at a gas station in Monrovia, Los Angeles County, California, the United States, July 16, 2026.