President Trump said on May 5 that high gasoline prices are a “very small price to pay” for the ongoing war with Iran, calling them necessary to prevent Iran from obtaining a nuclear weapon. He predicted that prices will “come crashing down” once the conflict ends. Meanwhile, diesel prices have climbed more sharply than gasoline, adding pressure to already high input costs for farmers and ranchers in 2026.
Patrick De Haan, head of petroleum analysis at GasBuddy, said, “Diesel now averaging about $5.65 a gallon nationally. That is only about 20 cents away from a new all-time record high.” De Haan noted that although there was a brief drop in diesel prices during April, they have since surged again. In states such as Michigan and Illinois, diesel has reached new all-time highs above $6 per gallon. Wisconsin and Indiana are also close to or surpassing previous records.
“Looking at it state by state, Great Lakes states have seen some tremendous refining issues that have really caused prices to rise dramatically,” De Haan said. He added that Arizona and Washington state on the West Coast are also experiencing record-high diesel costs. According to De Haan: “No states any longer have diesel averaging below $5 a gallon… Texas was the last holdout.” California’s average price has surpassed $8 per gallon.
The outlook for relief remains uncertain due to global tensions impacting energy supply routes such as the Strait of Hormuz—a key passageway moving about 20 million barrels of oil daily. “Relief may be a little bit elusive,” De Haan said regarding future price drops. He explained that if the strait reopens and tensions ease significantly, some price decline could happen within days but returning fully to pre-war levels may take until late this year or into 2027.
De Haan explained why diesel is rising faster than gasoline: “Gasoline is the top product flowing out of a barrel of oil… Diesel only accounts for about 25% of a barrel.” Jet fuel represents an even smaller share but has been hit hardest by recent disruptions.
For agriculture professionals who rely heavily on diesel-powered equipment throughout planting and harvest seasons, these increases affect not just operational costs but can influence broader economic trends as well. AgWeb provides news coverage on commodity markets and farm leadership strategies while reaching agricultural professionals through extensive online content and community advocacy programs according to the official website.
De Haan concluded: “Diesel is the fuel that drives agriculture… And that’s why these price increases are so impactful, not just at the pump, but all the way through the economy.” While demand for both fuels remains strong despite higher costs so far this year, he warned consumption might slow if national averages climb further.
