This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Even if we don't drive a dual-tank 18-wheeler that costs $1,500 to fill, record diesel prices are affecting our budgets. The workhorse fuel doesn't get the same headlines as gas, but its price influences the cost of making and moving much of what we all buy.

Diesel fuel has climbed over $2 a gallon in the last year, topping $6 for the first time Friday, according to AAA.

The previous record of $5.82 stemmed from Russia’s 2022 invasion of Ukraine, and it’s that same war that underpins much of the latest price pressures. Russia is normally a major exporter of diesel, but escalating Ukrainian drone strikes have crippled its oil refineries. This is one reason the price of diesel has risen more than gas, even though the U.S.-Iran war is creating a massive oil bottleneck that impacts both fuels.

Brown University's real-time Iran War Energy Cost Tracker estimates Americans have paid more than $100 billion in higher energy costs since that war began, with roughly 45% coming from rising diesel prices.

How diesel hits your wallet

Diesel fuels the trucks delivering products to store shelves and homes; It also powers farm, mining and construction equipment. That means a product may require diesel several times before it ever reaches you.

The impact of record-breaking diesel costs won't be equal across everything you buy. A USDA study found that some foods are particularly sensitive to elevated diesel and trucking costs. Potatoes and onions, for example, are largely grown far from major markets and depend heavily on trucks to reach grocery stores across the country.

That helps explain why a diesel shock can eventually find its way into places that might seem far removed from the gas station: your grocery cart, Amazon order, restaurant check or home-repair bill.

So what?

With diesel prices now heavily influenced by two wars, forecasts come with a major caveat: No one knows how long the conflicts — or their impact on energy markets — will last.

In the coming months, the EIA expects global distillate fuel production — a category that includes diesel — to remain below last year's levels, keeping U.S. diesel inventories low and prices high.

And Federal Reserve Governor Christopher Waller recently said that although higher energy prices haven't yet significantly spilled into other goods and services, he still considers them a risk to inflation. Consumer prices are already 3.4% higher than they were a year ago.

The bottom line: You can't control diesel prices, but knowing what you typically spend on groceries and other essentials can help you spot where costs are going up — and decide whether you have room to substitute products or cut back.

You could also trim discretionary spending or delay nonessential purchases to build a cash cushion. That gives you more breathing room if prices keep climbing, without having to reach for a credit card.

Related Reading

US Diesel Prices Hit a Record High, Pushing up Transport Costs for a Long List of Goods (AP via Yahoo News)

The Diesel Shock Is Here. Which US States Will be Hit the Hardest? (Atlantic Council)

School Districts Face a Back-to-School Math Problem: The High Price of Diesel (NPR)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20260914SW