Soaring U.S. diesel prices slam local communities as fuel costs surge - CBS News (ios-app://334256223/https/www.cbsnews.com/news/us-diesel-prices-squeeze-schools-farms/) (android-app://com.treemolabs.apps.cbsnews/https/www.cbsnews.com/news/us-diesel-prices-squeeze-schools-farms/) (National » Feed) (https://www.cbsnews.com/latest/rss/main/) (National » MoneyWatch Feed) (https://www.cbsnews.com/latest/rss/moneywatch/) (index.html) (../../manifest.json) (https://www.cbsnews.com/fly/bundles/cbsnewscore/icons/icon.svg) (https://www.cbsnews.com/fly/bundles/cbsnewscore/icons/icon-32x32.png) (https://www.cbsnews.com/fly/bundles/cbsnewscore/icons/icon-192x192.png) (https://www.cbsnews.com/fly/bundles/cbsnewscore/icons/icon-512x512.png) (https://assets1.cbsnewsstatic.com) (https://assets2.cbsnewsstatic.com) (https://assets3.cbsnewsstatic.com) (https://global.ketchcdn.com) (https://cdn.privacy.paramount.com) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/ProximaNova-Regular/ProximaNova-Regular.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/ProximaNova-Bold/ProximaNova-Bold.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/PublicoHeadline-Bold/PublicoHeadline-Bold.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/PublicoHeadline-Black/PublicoHeadline-Black.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/PublicoText/PublicoText.woff2) (../../fly/bundles/cbsnewscontent/css/articleV2.min.css@v=488336849cea7c600975176d25f777a4.css) (../../fly/bundles/cbsnewscontent/css/articleV2.min.css@v=488336849cea7c600975176d25f777a4.css) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProSerif_TTNormsProSerif_normal_normal_400.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProSerif_TTNormsProSerif_italic_normal_400.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProSerif_TTNormsProSerif_normal_normal_700.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProNormal_normal_normal.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProNormItalic_italic_normal.woff2) (https://www.cbsnews.com/fly/bundles/cbsnewscontent/fonts/TTNorms/TTNormsProBold_normal_normal.woff2) (../../fly/bundles/cbsnewscontent/css/responsiveV2.min.css@v=488336849cea7c600975176d25f777a4.css) (../../fly/bundles/cbsnewscontent/css/responsiveV2.min.css@v=488336849cea7c600975176d25f777a4.css)       (index.html#site-header:66)    (index.html#x)     (index.html#) Latest    (https://www.cbsnews.com/us/) U.S.   (https://www.cbsnews.com/live-updates/iran-war-us-trump-talks-strait-of-hormuz/) Iran War   (https://www.cbsnews.com/news/vmas-mtv-awards-2026-how-to-watch/) MTV VMAs   (https://www.cbsnews.com/world/) World   (https://www.cbsnews.com/politics/) Politics   (https://www.cbsnews.com/entertainment/) Entertainment   (https://www.cbsnews.com/healthwatch/) HealthWatch   (https://www.cbsnews.com/moneywatch/) MoneyWatch   (https://www.cbsnews.com/crime/) Crime   (https://www.cbsnews.com/space/) Space   (https://www.cbssports.com/) Sports   (https://www.cbsnews.com/brandstudio/) Brand Studio   (https://www.thefp.com/?utm_source=cbsnews&utm_medium=global_nav) The Free Press     (https://www.cbsnews.com/cbslocal/) Local News    (https://www.cbsnews.com/atlanta/) Atlanta   (https://www.cbsnews.com/baltimore/) Baltimore   (https://www.cbsnews.com/sanfrancisco/) Bay Area   (https://www.cbsnews.com/boston/) Boston   (https://www.cbsnews.com/chicago/) Chicago   (https://www.cbsnews.com/colorado/) Colorado   (https://www.cbsnews.com/detroit/) Detroit   (https://www.cbsnews.com/losangeles/) Los Angeles   (https://www.cbsnews.com/miami/) Miami   (https://www.cbsnews.com/minnesota/) Minnesota   (https://www.cbsnews.com/newyork/) New York   (https://www.cbsnews.com/philadelphia/) Philadelphia   (https://www.cbsnews.com/pittsburgh/) Pittsburgh   (https://www.cbsnews.com/sacramento/) Sacramento   (https://www.cbsnews.com/texas/) Texas     (https://www.cbsnews.com/live/) Live    (https://www.cbsnews.com/live/) CBS News 24/7   (https://www.cbsnews.com/baltimore/live/) Baltimore   (https://www.cbsnews.com/sanfrancisco/live/) Bay Area   (https://www.cbsnews.com/boston/live/) Boston   (https://www.cbsnews.com/chicago/live/) Chicago   (https://www.cbsnews.com/colorado/live/) Colorado   (https://www.cbsnews.com/detroit/live/) Detroit   (https://www.cbsnews.com/losangeles/live/) Los Angeles   (https://www.cbsnews.com/miami/live/) Miami   (https://www.cbsnews.com/minnesota/live/) Minnesota   (https://www.cbsnews.com/newyork/live/) New York   (https://www.cbsnews.com/philadelphia/live/) Philadelphia   (https://www.cbsnews.com/pittsburgh/live/) Pittsburgh   (https://www.cbsnews.com/sacramento/live/) Sacramento   (https://www.cbsnews.com/texas/live/) Texas   (https://www.cbsnews.com/live/48-hours/) 48 Hours   (https://www.cbsnews.com/live/60-minutes/) 60 Minutes     (index.html#) Shows    (https://www.cbsnews.com/48-hours/) 48 Hours   (https://www.cbsnews.com/60-minutes/) 60 Minutes   (https://www.cbsnews.com/evening-news/) CBS Evening News   (https://www.cbsnews.com/cbs-mornings/) CBS Mornings   (https://www.cbsnews.com/cbs-news-mornings/) CBS Morning News   (https://www.cbsnews.com/cbs-reports/) CBS Reports   (https://www.cbsnews.com/cbs-mornings/saturday/) CBS Saturday Morning   (https://www.cbsnews.com/the-daily-report/) The Daily Report   (https://www.cbsnews.com/the-dish/) The Dish   (https://www.cbsnews.com/face-the-nation/) Face the Nation   (https://www.cbsnews.com/sunday-morning/) Sunday Morning   (https://www.cbsnews.com/the-takeout/) The Takeout   (https://www.cbsnews.com/things-that-matter/) Things That Matter   (https://www.cbsnews.com/uplift/) The Uplift        (https://www.cbsnews.com/cbs-investigates/) CBS News Investigates   (https://www.cbsnews.com/cbs-news-confirmed/) CBS News Confirmed   (https://www.cbsnews.com/podcasts/) Podcasts   (https://www.cbsnews.com/newsletters/) Newsletters   (https://www.cbsnews.com/app/?ftag=CNM-16-10abd6g) Download Our App   (https://www.cbsnews.com/team/) CBS News Team   (https://www.cbsnews.com/executive-team/) Executive Team   (https://www.cbsnews.com/brandstudio/) Brand Studio   (https://www.paramountplus.com/news/?ftag=PPM-06-10ahi1b) Paramount+   (https://pages.beamery.com/paramount/page/cbsnewsstations) Join Our Talent Community   (https://www.cbsnews.com/rss/) RSS Feeds        (https://www.cbsnews.com/)     (index.html#search-form:)    (https://www.cbsnews.com/search/)          (https://www.cbsnews.com/search/?partial=html) (index.html#) (Close search form)     (https://www.cbsnews.com/moneywatch/) MoneyWatch   | (https://www.cbsnews.com/moneywatch/managing-your-money/) Managing Your Money   (https://www.cbsnews.com/news/price-tracker/) CBS News Price Tracker         (https://www.cbsnews.com/live/) (Watch CBS News)      (https://www.cbsnews.com/live/)  Watch CBS News   (Click to hide breaking news banner)       (https://www.cbsnews.com/moneywatch/?ftag=CNM-16-10abg0d) MoneyWatch  Soaring U.S. diesel prices slam local communities as fuel costs surge     By Aimee  Picchi      (https://www.cbsnews.com/team/aimee-picchi/) Aimee  Picchi Associate Managing Editor, MoneyWatch   Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.  (https://www.cbsnews.com/team/aimee-picchi/) Read Full Bio   (https://www.cbsnews.com/team/aimee-picchi/) Aimee  Picchi    Updated on:  September 25, 2026 / 5:22 PM EDT / CBS News    (https://www.google.com/preferences/source?q=cbsnews.com)   Add CBS News on Google     Soaring (https://www.cbsnews.com/news/diesel-export-ban-record-price-impact/) diesel prices  are rippling through the U.S. economy, putting a financial squeeze on schools, farmers and small businesses as their fuel costs spike.  Average diesel prices hovered around $6.50 a gallon on Friday, just below their record high of $6.53 on Sept. 22 and up from $3.69 a year ago, according to (https://gasprices.aaa.com/) AAA . That jump is raising the cost of operating school buses and forcing some institutions to scramble for ways to cut costs. Farmers, who rely on diesel to run agricultural machinery, also face sharply higher costs, while enterprises ranging from construction firms to food banks report sharply higher expenses to fuel their vehicles and delivery trucks.  One Georgia food bank said it will spend an extra $100,000 this year on diesel, money that otherwise would have gone to feed families. "That would actually translate to about 122,000 meals that we would be able to provide if we didn't have to spend that on unexpected diesel fuel prices," Kenneth Hill, the supply chain officer for the Atlanta Community Food Bank, told (https://www.cbsnews.com/atlanta/news/atlanta-food-bank-absorbs-record-high-diesel-costs-to-keep-feeding-georgia-families/) CBS News Atlanta  . Georgia diesel prices averaged $6.32 a gallon on Friday, up from $3.54 a year ago, according to AAA. Ranchers are feeling the pinch due to their reliance on diesel-powered trucks to check on herds and water pumps, said Andrew Coppin, CEO of Ranchbot, which sells remote monitoring technology for water pumps and other equipment.   " Outside of labor, diesel is the single biggest input into a lot of farming operations, so it's a very material increase in the cost of operations," he told CBS News, noting that his company has seen a major increase in inquiries from ranchers due to surging diesel prices. "If it's an F-250, a Ram 2500 or a Silverado, we're talking 1-ton diesel trucks, and on a good day they are getting 12 miles to a gallon." Diesel's impact on inflation Diesel is widely used in commercial trucking, agriculture, and construction, and rising prices can increase the cost of transporting goods across the country.  Gasoline prices have also soared, although not as much as diesel, which is facing a global shortage due to shipping and refining disruptions stemming from the Iran and Russia-Ukraine wars.  As a result, economists warn that the spike in diesel costs could fan inflation, which rose in August at an (https://www.cbsnews.com/news/august-cpi-report-inflation-fed-rates/) annual rate of 3.4%  , up from 2.4% at the beginning of 2026.  Inflation could jump to 3.6% by year-end due to the rise in fuel prices, according to EY-Parthenon chief economist Gregory Daco.  "Higher diesel and freight expenses risk bleeding into core inflation by raising the cost of producing and transporting consumer goods," Bernard Yaros, lead U.S. economist at Oxford Economics, said in a report. "Prices for grocery store items, restaurants and delivery services are the most sensitive to higher diesel prices." (Gas prices over time (Line chart))     Those higher costs are also being felt more broadly across local communities.  "Certainly, when I wake up in the morning, I'm thinking about diesel," Marty Gray, owner of Gray Farms in Watseka, Illinois, told (https://www.cbsnews.com/chicago/news/record-diesel-prices-illinois-farming-harvest-season/) CBS News Chicago  . "I'm thinking about the trucks running, the [grain] elevator and stuff like that." Gray also said his family-owned farm is facing tight margins as harvest season gets underway. "So, we're just trying to decide do we fill up the tanks now, or do we need to wait a little bit? Will it get better, or will it get worse?" Raptor Roll Offs, a Colorado waste management and dumpster rental business that uses diesel trucks to deliver dumpsters to and from homes and industrial sites in the Denver area, may need to pass higher fuel costs on to customers, owner George Dempsey (https://www.cbsnews.com/colorado/news/small-business-diesel-prices-energy-inflation-colorado/) told  CBS News Denver. "We're holding on as long as we can," Dempsey said. "We can't absorb it all ourselves, and so you have this trickle effect."  Colorado diesel prices now average $6.16 per gallon, compared with $3.51 a year ago, AAA data shows.  Colorado's Cherry Creek Schools relies on diesel to power its more than 300 buses, which transport roughly 24,000 students across the district. It's facing an additional $500,000 in diesel costs this year, pushing its total fuel budget to about $2 million — far higher than the $1.5 million it had originally budgeted, Mark Ingram, the district's director of transportation, told (https://www.cbsnews.com/colorado/news/soaring-diesel-prices-impacting-colorado-school-districts/) CBS News Denver.   Ingram said the school district is weighing consolidating some routes and scaling back certain activity trips to save fuel costs.  Would a diesel export ban help? Some Republican lawmakers are calling for the (https://www.cbsnews.com/news/diesel-export-ban-record-price-impact/) U.S. to ban diesel exports  to lower costs. The U.S. refines more diesel than it can use domestically, with energy companies selling the remainder abroad.  Although an export ban might initially lower diesel costs in some U.S. regions, it could eventually backfire by worsening global shortages, according to energy experts and economists. That would likely send diesel prices even higher, they say. "A ban would temporarily lower prices, but short-term relief would be uneven geographically," Oxford Economics said in a report. "Price declines would be concentrated in the Gulf Coast and Midwest, where most refining capacity is located. Distillate shortages are concentrated in the Northeast and West Coast, and these regions would see little benefit from an export ban." Edited by (https://www.cbsnews.com/team/alain-sherter/) Alain  Sherter   More from CBS News  (https://www.cbsnews.com/news/sen-duckworth-slams-plan-triumphal-arch-military-complex-trump/?intcid=CNR-02-0623)   Duckworth slams Trump's "foolhardy plan" to make triumphal arch a military complex  ()     (https://www.cbsnews.com/news/new-ai-gadgets-tech-companies/?intcid=CNR-02-0623)   Ready or not, here come the AI gadgets, from "charms" to smart speakers  ()     (https://www.cbsnews.com/news/fast-food-menus-glp-1-users/?intcid=CNR-02-0623)   How GLP-1 weight-loss drugs are changing fast-food menus  ()     (https://www.cbsnews.com/news/ice-spending-detention-capacity-gao-report/?intcid=CNR-02-0623)   ICE wasted millions in rapid push to expand detention capacity, watchdog finds  ()      Go deeper with The Free Press  (https://www.thefp.com/p/moscow-dispatch-russia-war-trip-home?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=bottom_page)   Dispatch from Moscow: Fuel Shortages, Rising Fatigue, and No End of War in Sight  ()     (https://www.thefp.com/p/tyler-cowen-why-oil-price-spikes?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=bottom_page)   Tyler Cowen: Why Oil Price Spikes Could Spark a Global Recession  ()        In: (https://www.cbsnews.com/tag/gas-prices/) Gas Prices  (https://www.cbsnews.com/tag/inflation/) Inflation  (https://www.cbsnews.com/tag/diesel-fuel/) Diesel Fuel      © 2026 CBS Interactive Inc. All Rights Reserved.            (Video: Would a diesel export ban work to lower prices?)   (https://www.cbsnews.com/video/would-diesel-export-ban-work-lower-prices/)    Would a diesel export ban work to lower prices? 03:55    Would a diesel export ban work to lower prices?  (03:55)     (https://www.cbsnews.com/news/sen-duckworth-slams-plan-triumphal-arch-military-complex-trump/?intcid=CNR-01-0623)   Duckworth slams Trump's "foolhardy plan" to make triumphal arch a military complex  ()     (https://www.cbsnews.com/news/new-ai-gadgets-tech-companies/?intcid=CNR-01-0623)   Ready or not, here come the AI gadgets, from "charms" to smart speakers  ()     (https://www.cbsnews.com/news/fast-food-menus-glp-1-users/?intcid=CNR-01-0623)   How GLP-1 weight-loss drugs are changing fast-food menus  ()     (https://www.thefp.com/p/moscow-dispatch-russia-war-trip-home?utm_source=cbs_news&utm_campaign=cbs_news_recirculation&utm_content=right_rail)   Dispatch from Moscow: Fuel Shortages, Rising Fatigue, and No End of War in Sight  ()                               Featured  (https://www.cbsnews.com/politics/) Political News  (https://www.cbsnews.com/us-iran-tensions/) Iran War Latest  (https://www.cbssports.com/nfl/scoreboard/) NFL Scores  (https://www.cbssports.com/college-football/rankings/cbs-sports-rankings/) College Football Rankings   Follow Us On  (https://www.youtube.com/CBSNews/) YouTube  (https://www.facebook.com/CBSNews/) Facebook  (https://instagram.com/cbsnews/) Instagram  (https://x.com/CBSNews/) X   Privacy  (https://www.viacomcbsprivacy.com/policy) Privacy Policy  (https://privacy.paramount.com/en/policy#additional-information-us-states) California Notice  (index.html#onetrust-pc-sdk) Your Privacy Choices  (https://legal.paramount.com/us/en/cbsi/terms-of-use) Terms of Use  (https://privacy.paramount.com/childrens) Minors' Privacy Policy   More from CBS News  (https://www.cbsnews.com/newsletters/) Newsletters  (https://www.cbsnews.com/podcasts/) Podcasts  (https://www.cbsnews.com/app/) Download Our App  (https://www.cbsnews.com/brandstudio/) Brand Studio  (https://www.cbsnews.com/sitemap/) Sitemap   Company  (https://www.paramount.com/about/) About Paramount  (https://www.paramount.com/about/businesses/advertising) Advertise With Paramount  (https://pages.beamery.com/paramount/page/cbsnewsstations) Join Our Talent Community  (https://help.cbsnews.com/s/) Help  (https://www.cbs.com/showfeedback/) Feedback  (https://ombudsman.cbsnews.com/) Contact the Ombudsman    Copyright ©2026 CBS Interactive Inc. All rights reserved.                      View CBS News In    CBS News App  (https://www.cbsnews.com/app/?ftag=CNM-16-10abd6g&url=https://www.cbsnews.com/news/us-diesel-prices-squeeze-schools-farms/) Open     Chrome     Safari  (index.html#app) Continue                                                                                                                                                                                                                                                                                                                                              (https://www.cbsnews.com/fly/bundles/cbsnewscore/js-build/main.js?v=488336849cea7c600975176d25f777a4) (https://www.cbsnews.com/fly/bundles/cbsnewscore/js-build/main.responsive.js?v=488336849cea7c600975176d25f777a4) (https://securepubads.g.doubleclick.net) (https://securepubads.g.doubleclick.net) (https://adservice.google.com) (https://imasdk.googleapis.com) (https://c.amazon-adsystem.com) (https://c.amazon-adsystem.com) (https://ib.adnxs.com) (https://s.amazon-adsystem.com) (https://cbsi-d.openx.net) (https://apex.go.sonobi.com) (https://sofia.trustx.org) (https://cbsi.demdex.net) (https://dpm.demdex.net)