U.S. diesel hits $5.85 per gallon, surpassing 2022 peak
Nationwide average rose past the June 2022 record as Middle East and Russia supply disruptions tighten global fuel markets.
U.S. diesel prices reach $5.85 per gallon, breaking 2022 record
U.S. retail diesel prices hit $5.85 per gallon on Thursday, according to the American Automobile Association, surpassing the previous record of $5.82 set on 17 June 2022. GasBuddy data recorded the new peak at $5.820 per gallon on Thursday afternoon. The advance comes as global fuel supply tightens ahead of peak demand season. Patrick De Haan, head of petroleum analysis at GasBuddy, confirmed the price exceeded the 2022 high. The nationwide average for gasoline stood at $4.125 per gallon on the same date, 92 cents above the Labor Day 2025 level.
Middle East and Russia disruptions tighten global diesel supply
Diesel markets in the United States and globally have tightened in recent weeks amid reduced fuel supply from the Middle East and Russia. The disruptions stem from the Iran conflict and the war in Ukraine. Russia imposed a ban on diesel exports following drone attacks on refineries. Middle distillate cracks reached record highs this week as re-escalation in the Middle East compounded supply pressure. Insufficient refining capacity elsewhere has failed to compensate for lost diesel flows from the Strait of Hormuz and Russia.
Harvest and holiday demand set to increase diesel consumption
Diesel demand is forecast to grow in the coming weeks and months with the harvest season for farmers and the holiday season for retailers. Trucks will haul more goods to stock up for the holidays, increasing fuel consumption. The timing of the price peak coincides with rising seasonal demand. Analysts at GasBuddy had forecast the all-time high would occur before Labor Day. The current price level threatens to drive energy-linked inflation higher as diesel is essential for economic growth and the price of goods.
Labor Day weekend gasoline spending up $1.39 billion year-on-year
The national average gasoline price is on track for the most expensive Labor Day weekend in nominal terms. Americans will spend approximately $1.39 billion more on gasoline this Labor Day weekend compared to 2025, according to GasBuddy's De Haan. The increase reflects both higher prices and sustained demand. The diesel price record adds to concerns about the U.S. economy and the Federal Reserve's interest rate path, as fuel costs feed through to goods prices and transportation expenses.
Sources
- Bloomberg · U.S. retail diesel rose to $5.85 per gallon on Thursday according to AAA, exceeding the June 2022 peak
- OilPrice.com · GasBuddy data recorded $5.820 per gallon on Thursday afternoon, surpassing the 17 June 2022 record of $5.819; national gasoline average at $4.125 per gallon; Labor Day weekend gasoline spending up $1.39 billion year-on-year
MENA Trade Monitor is published by Arabian Media Network. Pieces are produced by the Disruption Desk with AI-assisted synthesis of the cited sources and automated verification against the network's editorial policy. Corrections: corrections page.