Why Diesel Has Become a Much Bigger Economic Problem Than Gasoline

The price of diesel has risen much more quickly than gasoline as the U.S.-Israeli war with Iran has choked global oil supplies. That could have severe consequences for the diesel-dependent transportation industry.

Since the war began on Feb. 28, the average price of a gallon of diesel has gone up about 45 percent, while a gallon of regular gasoline has risen about 35 percent. The Energy Information Administration, a federal research agency, expects average diesel prices to peak at more than $5.80 a gallon this month. Gasoline, the agency said, would average $4.30 a gallon.

Prices have gone down modestly in the past week on hopes for a peace deal, but the gap between diesel and gasoline remains yawning.

Why did diesel prices rise so quickly?

Even before the war, supplies of diesel were tight. That meant the world had little buffer when Persian Gulf countries — which produce a fair amount of diesel — were forced to slash exports. Adding to the challenge is that a lot of the oil produced in the region is especially suited for making diesel and the fuel that jets use.

Article source: https://www.nytimes.com/2026/04/23/business/energy-environment/iran-war-diesel-prices-gasoline.html