Diesel Prices Squeeze Truckers and Threaten Higher Consumer Costs

American trucking companies are facing mounting financial pressure as diesel prices climb amid the war with Iran, forcing some operators to reduce routes, shrink fleets, and reconsider whether their businesses remain viable. The nationwide fuel surge is also threatening to increase transportation expenses, putting additional pressure on food prices and household budgets.

The American Automobile Association reported a national average diesel price of approximately $6.32 per gallon in early October 2026, compared with about $3.68 to $3.76 before the conflict escalated in late February. California prices reached $8.35 per gallon, according to reports published October 7 and October 8.

The national average has exceeded the previous record of $5.816 per gallon set in June 2022, according to Fox News. Meanwhile, at least eight transportation-related companies filed for Chapter 11 bankruptcy protection in September, according to Fox Business, while the Los Angeles Times reported at least 16 freight company bankruptcies between August and September.

Miami-based trucker Suave Dorsett, who has nine years of driving experience, said higher fuel expenses are eroding earnings because freight rates have not kept pace.

"Fuel prices is going up, the rates are not going up," Dorsett told Fox News Digital. "So it's hurting our pockets real bad."

Dorsett said diesel reached $7.40 per gallon while he was traveling through Ohio. He also cited expenses including diesel exhaust fluid, parking, showers, vehicle repairs, towing, and load weighing.

"Some of the smaller companies, like the smaller owner ops, would slowly fall off and it's going to create a chain effect," Dorsett said, describing a potential "domino effect" across the industry.

Louisiana trucker Tyler Rinaldi, who transports hazardous materials and other freight, said his employer has already reduced some weekend operations.

"I've seen a lot of routes get cut," Rinaldi told Fox News Digital. "They're not really running like they want to on the weekends right now."

He said the operational changes are becoming increasingly apparent at his company.

"I definitely see a lot change because of it at my company, slowly, but it's starting to be more noticeable," Rinaldi said.

Rinaldi, who is married and has two children, warned that fewer routes could reduce employees' earnings.

"When they start cutting routes and trying to limit the expenses on what routes they send out," he said, "that takes away from the people that work in the company's pockets."

Charlotte, North Carolina, trucker Avante Jackson, who has 11 years of experience transporting steel and construction materials, questioned whether operators could remain profitable with fuel consuming so much revenue.

"If I'm putting all of my profit in the tank," Jackson said, "at the end of the day, what do I have left to keep the doors open?"

Jackson cautioned against "fear-mongering" about shortages but acknowledged that widespread business closures could affect local communities.

"It really could hit the community," he said.

Jackson urged President Donald Trump to consider the financial pressures on smaller operators.

"My message to President Trump would just be to think about who's keeping America moving," Jackson said. "Think about the little guys out here each and every day."

He also emphasized the industry's role in maintaining the national supply chain.

"We truly are the backbone of America, we keep America moving," Jackson said. "We just want you just to think about us and put yourself in our shoes...Let's try to get the fuel prices down and let's try to just make more of a change," he added. "We know we can do better."

Financial records reviewed by Fox Business show that eight transportation-related businesses sought bankruptcy protection in September. Florida-based Truckload LLC filed on September 9, with estimated assets of $100,001 to $500,000 and liabilities below $50,000. Its owner, Marcus Overcast, identified diesel and insurance expenses as contributing factors, with insurance representing the largest pressure.

Other filings included Globemaster Incorporated in Illinois on September 15, reporting approximately $1.1 million in assets and $3.26 million in liabilities; CLJ Transporting Inc. in Florida, reporting $483,205 in assets and $823,161 in liabilities; and Pacer Transport Inc. in Louisiana, estimating less than $50,000 in assets against $1 million to $10 million in liabilities.

Jett Transport & Materials LLC in Texas reported estimated assets of $100,001 to $500,000 and liabilities of $500,001 to $1 million. Mill Creek Logistics–Illinois Inc. reported approximately $885,500 in assets and $1.83 million in liabilities. Arizona-based RP Hay Hauling LLC reported $1.32 million in assets and $1.53 million in liabilities, while Xoco Transport LLC in Texas estimated both assets and liabilities at $1 million to $10 million.

In California, Fresno-based truck owner Jagroop Singh Deol has reduced his fleet from five trucks to two as fuel costs climb. The Los Angeles Times reported that filling a truck's tank, which cost approximately $1,000 at the beginning of the year, now costs more than $1,600.

"We're not making money," Deol said. "Trucking isn't a stable business."

Avninder Singh, chief executive of Bakersfield-based Roadies, said diesel prices above $8 per gallon have eliminated his company's profit margins. Its monthly fuel expenses have reached $450,000, and he has reduced the fleet to 100 trucks, half its size a year earlier.

"We have literally no margin on it. Like we are running and not making any money," Singh said. "Everything is going towards fuel."

Singh said he now pays $2,400 to fill a truck, compared with $1,200 when diesel cost approximately $4 per gallon before the war.

"Any American trucking company cannot survive at $8 a gallon," Singh said. "We are literally losing money."

To manage expenses, Singh has encouraged drivers to refuel in Arizona, where diesel is cheaper, before returning to California. He has also introduced bonuses for drivers who reduce idling and improve fuel efficiency. Deol uses battery-powered air-conditioning systems to avoid running truck engines while parked.

Higher diesel prices also affect farmers, manufacturers, shipping companies, and retailers because fuel is essential throughout the supply chain. David Ortega, a food economist at Michigan State University, described diesel as a central component of the American economy.

"Diesel is the workhorse fuel of the economy," Ortega said. "Semi-trucks, freight trains, barges, and farm machinery run on it. Most consumers never buy a gallon of diesel, but almost everything they do buy moved on diesel at some point, often several times, between production and the store shelf."

Automotive expert Lauren Fix told Fox Business that higher fuel expenses affect goods throughout the distribution network.

"When gas prices go up or diesel prices go up, everything that goes from point A to point B is affected," Fix said.

Mark Zandi, chief economist at Moody's, explained that consumers often experience diesel inflation indirectly through higher prices for transported goods.

"Gas is direct: It's coming right out of my pocket into the gas tank," Zandi said. "Diesel is indirect."

Zandi said the full effect could take six months to a year to reach consumers. He estimated that each sustained $1 increase in diesel prices could add approximately 0.1 percentage points to overall inflation, while Goldman Sachs projected that elevated diesel costs could increase food prices by 0.2 to 0.4 percentage points cumulatively over the coming months.

Food transportation expenses vary by product and distance. USA Today reported that transporting a truckload of potatoes from Idaho to Chicago costs 40% more than a year earlier, with diesel accounting for half the increase. Shipping refrigerated lettuce from Salinas, California, to New York costs approximately $10,000, including $4,200 in diesel expenses, compared with about $2,700 for the fuel a year earlier.

Farmers are also absorbing higher costs during the fall harvest. According to Purdue University economist Michael Langemeier, fuel expenses have increased by $18 per acre, or 82%, for corn and $11 per acre, or 79%, for soybeans compared with the previous year.

President Trump has defended higher fuel costs as a temporary consequence of efforts to prevent Iran from obtaining nuclear weapons.

"a small price to pay for Iran not having a Nuclear Weapon," Trump wrote on Truth Social, referring to rising gasoline costs.

The Group of Seven nations agreed on October 2 to release 100 million barrels of oil and fuel products from emergency reserves over four months, including diesel supplies intended to ease immediate market pressure. The administration has also temporarily expanded highway access to red-dyed diesel, which is normally reserved for off-road uses.

Lauren Fix said the fuel measure could reduce costs for some drivers.

"huge difference," Fix said, estimating potential savings of 50 cents to $1 per gallon.

Trump has predicted that oil prices will fall as the conflict subsides, although disruptions to Middle Eastern oil supplies and refining infrastructure continue to pressure energy markets. His administration has also said it will not pursue a diesel export ban.