03/09/2026
Diesel prices have surged past $4 per gallon for the first time in nearly two years, driven by Middle East conflict, severely impacting trucking, agriculture, and construction. Fuel is the largest variable operating cost, with a $5/gallon price costing roughly $0.83 per mile, squeezing razor-thin margins and creating severe cash flow gaps due to delayed, freight payments.
Cost per Mile: At $4.60 per gallon, a truck averaging 6 miles per gallon spends approximately $0.77 per mile on fuel.
Rapid Increases: Diesel prices are rising faster than gasoline due to tight supply.
Cash Flow Crisis: Fuel is paid at the pump immediately, while freight revenue is often delayed by 30 to 45 days, exacerbating the financial strain.
Supply Chain Effects: The rise is hitting agriculture just before spring planting, increasing costs for fertilizers and transport.