Higher Diesel Costs Could Put More Pressure on Grocery Prices as Families Already Pay More for Food

MADISON, WI — Diesel prices have climbed to $6.29 a gallon as the House voted this week to ⁠direct the president to remove U.S. forces from hostilities with Iran, adding new pressure on the trucks and supply chains that move food and other essential goods across the country.

The House ⁠voted 220–204 on September 15 to approve a War Powers resolution (H. Con. Res. 93) directing the president to remove U.S. Armed Forces from hostilities with Iran.

According to the U.S. Energy Information Administration, the ⁠national average price of on-highway diesel reached $6.285 a gallon for the week of September 14, up from $5.348 on August 3 — an increase of nearly 94 cents, or 17.5 percent, in just six weeks.

In Wisconsin, ⁠diesel averaged $6.19 a gallon as of September 17, according to AAA.

The impact can extend well beyond the pump. ⁠Trucks ship 83 percent of U.S. agricultural products and 92 percent of dairy products, fruits, vegetables and nuts, according to USDA-sponsored research. And many shipping, delivery and freight companies use ⁠fuel surcharges tied to EIA diesel price data, meaning higher diesel prices can increase transportation costs throughout the food supply chain.

Wisconsinites for Affordability spokesperson Meghan Roh said:

“Wisconsin families are already getting squeezed by high grocery prices and the cost of everyday necessities. Rising diesel prices only add to the pressure. When it costs more to move food and other goods across the country, those transportation costs don’t just disappear—they fuel higher prices at the checkout line. This week’s House vote was a stark reminder: the overwhelming majority of House Republicans voted against ending U.S. involvement in Iran, and families at home could face greater economic pressure the longer the conflict continues.”

Those higher diesel prices can ripple through the food supply chain. ⁠Trucks ship 83 percent of U.S. agricultural products and 92 percent of dairy products, fruits, vegetables and nuts, according to USDA-sponsored research. Many freight and delivery companies also use fuel surcharges tied to diesel prices, meaning higher fuel costs can increase transportation costs for businesses moving goods around the country.  

Families are already paying more for groceries. The latest federal inflation data show ⁠food-at-home prices were up 2.2 percent over the 12 months ending in August.  

Higher diesel prices do not automatically translate dollar-for-dollar into higher grocery prices. Businesses can absorb, offset or pass along transportation costs to varying degrees, and food prices also reflect labor, commodities, processing, packaging, weather and supply and demand. But ⁠transportation remains a core part of moving food from farms to consumers, leaving families and businesses exposed when diesel prices rise sharply.