Story perspectives

U.S. diesel hits record $6.05 as Fed hike odds surge

By Drooid · Sep 12, 2026, 10:00 PM UTC · How we work

Summary

Diesel Prices Hit Record

U.S. diesel prices hit a record $6.05 per gallon, the first national average above $6, according to AAA.
The record diesel price helped push wholesale energy costs up 4.2% in August, per the Producer Price Index.
Headline CPI rose 0.4% in August, keeping annual inflation at 3.4% year-over-year.
CME FedWatch showed an 85% probability of a 0.25-point Fed rate hike after the inflation reports.

Summary

Mueller Warns

Iowa farmer Mark Mueller warned record diesel costs could push his operation to the brink.
U.S. President Donald Trump said oil prices will tumble only after the midterms after the Dallas convention.
House Democrats posted that the diesel surge will raise delivery fees and grocery prices.
Michigan State University professor David Ortega warned fuel surcharges will soon shift more diesel costs to grocery shelves.

History

Historical Context

In October 1973 OAPEC imposed an oil embargo on the United States after the Yom Kippur War, prompting President Richard Nixon to name William E. Simon head of the new Federal Energy Office to coordinate the national response. The embargo lifted oil prices by nearly 300%, triggered gasoline rationing and spurred lasting energy-policy initiatives that underlie today’s diesel price surge.

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Diesel Prices Hit Record

U.S. diesel prices hit a record $6.05 per gallon, the first national average above $6, according to AAA.
The record diesel price helped push wholesale energy costs up 4.2% in August, per the Producer Price Index.
Headline CPI rose 0.4% in August, keeping annual inflation at 3.4% year-over-year.
CME FedWatch showed an 85% probability of a 0.25-point Fed rate hike after the inflation reports.

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