World & Nation
· collected 2026-09-04 · by Clara Harter, Suhauna Hussain
U.S. hits diesel fuel milestone as prices slam California economy from trucks to crops
asserted
prices → hit → crops
- Diesel prices have hit a record national average of $5.85 a gallon, with California nearing $7.71, squeezing a state economy built on trucking, farming and global trade.
- War-driven disruptions to fuel supplies, including cargo rerouted from the Suez Canal, are driving up transportation and grocery costs, hitting small trucking fleets, family farms and low-income households hardest.
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disruptions → hit → fleets
- Economists say the diesel spike, while painful, is not unprecedented in inflation-adjusted terms and comes as voters already sour on the economy ahead of November’s pivotal midterm elections.
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voters → say → elections
In late summer, when almond husks split open, workers at Creekside Farming in Madera gear up machinery to shake the trees.
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workers → split → trees
Tractors zoom around, fallen nuts are collected, and trucks cart off the bins of almonds.
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trucks → zoom → almonds
The whole process relies on diesel fuel, which has grown extremely expensive in recent months, said farm owner Jay Mahil, whose family has been growing wine grapes, citrus and other crops in the Central Valley for four generations.
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family → rely → generations
The national average price of diesel hit a new record high of $5.85 per gallon Friday, while California’s average climbed to about $7.71, according to the AAA motor club.
uncertain
average → hit → club
The oil product undergirds much of the global economy, and California, a major player, is no exception to the pain caused by ongoing supply chain disruptions stemming from the U.S. war with Iran.
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California → undergird → Iran
The higher fuel costs are squeezing businesses across various industries in California, which has massive trucking and agricultural sectors that rely heavily on diesel to power equipment.
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that → squeeze → equipment
Mahil said his fuel costs are up 40% from this time last year.
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costs → say → time
“These higher costs come at the worst time for us, “ Mahil said.
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Mahil → come → us
“These are highly inundated time frames.”
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These → inundate → ?
Mahil keeps a close eye on prices.
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Mahil → keep → prices
When there’s an occasional slump or dip in the oil market, he orders several truckloads of fuel.
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he → ’ → fuel
But other businesses usually have the same idea, and the fuel depots often run out those days.
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depots → have → idea
“We are running a little leaner right now, with less oil in the tanks,” Mahil said.
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Mahil → run → tanks
California diesel prices set a record earlier on in the war, at around $7.75 per gallon in April.
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prices → set → April
Greg Dubuque, general manager for a trucking fleet based out of Montebello, noted that the cost to fill his trucks in California has gone from around $1,200 in April to $1,800.
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cost → base → 1,800
“It’s a dramatic impact, especially for us smaller companies,” he said.
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he → ’ → companies
Gene Seroka, executive director of the Port of Los Angeles, said more than two-thirds of cargo moving in and out of the port is carried by trucks.
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thirds → say → trucks
And of the some 1,200 trucking companies that do business at the port, more than 50% are small to medium-sized companies that are seriously struggling with prices, Seroka said.
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Seroka → do → prices
“It’s difficult for companies to absorb such an energy shock as we’ve seen over the past six months,” Seroka said.
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Seroka → ’ → months
The turmoil in the Persian Gulf region is forcing cargo away from the Suez Canal and onto a longer route around the southern tip of Africa, creating longer transit times that burn more fuel and drive costs up further, Seroka said.
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Seroka → force → costs
Increased diesel prices are pushing up the cost to transport food.
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prices → push → food
are most sensitive to price increases because diesel is typically used to power both cold storage and transportation.
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diesel → use → storage
Nick Vyas, a supply chain expert and professor at USC Marshall School of Business, said that while companies try to absorb some of the cost increase, grocery prices are starting to tick up in stores.
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prices → say → stores
Though grocery costs may decrease slightly once fuel costs stabilize, they are unlikely to return to prewar baselines as retailers adjust to higher prices, Vyas noted, pointing to sustained increases in food costs post-pandemic.
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Vyas → decrease → costs
With American refiners funneling the fuel oil into international markets, the domestic supply has dwindled, driving up prices.
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supply → funnel → prices
Diesel prices jumped 7 cents overnight, 24 cents in the past week, 48 cents in the past month and $2.14 compared with this time last year, according to AAA.
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prices → jump → AAA
Kandace Redd, a AAA spokesperson, said the organization’s past research shows that consumers are most likely to drive less, combine errands and reduce shopping or dining out to cope with record pump prices.
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consumers → say → prices
Diesel prices in California are typically above the national average as the state faces cost pressures from higher taxes and environmental standards, Vyas said.
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Vyas → face → taxes
Because around 40% of goods imported in the U.S. pass through the San Pedro and Long Beach ports, California’s energy costs also expose the rest of the nation’s supply chain to these increases.
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costs → import → increases
Larger companies are better poised to absorb some of the shock of increased prices through higher profit margins and the ability to buy in bulk, Vyas said.
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Vyas → poise → bulk
Mom-and-pop businesses, such as small trucking fleets or family farms, are hit harder.
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businesses → hit → fleets
“When you’re a large national truckload carrier, the J.B. Hunts and the Swifts and the Werners of the world, they do a lot of hedging on fuel,” meaning they establish advance agreements to purchase fuel at a fixed cost, Dubuque said.
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Dubuque → ’re → cost
His smaller fleet of 40 trucks, on the other hand, is generally stuck paying the price at the pump.
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fleet → stick → pump
Dubuque is taking several steps to try and mitigate the impact.
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Dubuque → take → impact
This includes explaining the rising cost of doing business to his customers, avoiding refueling in California where possible and using alternative fuels to power air conditioning in trucks overnight.
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This → include → trucks
But as the manager of a smaller company, he is nervous about how long these strategies will work if diesel prices don’t start dipping.
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prices → work → company
A similar disparity is seen when it comes to the impact of rising diesel prices on consumers, Vyas noted.
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Vyas → see → consumers
…and 10 more, not listed.
