05/28/2026
🚛 KGI Group Industry Update
Why is diesel so expensive right now? Here is a quick breakdown of why:
National diesel recently hit $5.60 per gallon, with prices reaching $7.36 in California, around $6.00 in the Pacific Northwest, and even the Gulf Coast sitting at $5.18.
Rising tensions in the Middle East and global oil supply cuts have pushed fuel prices higher worldwide, and diesel is being hit especially hard because it powers nearly every part of the freight industry.
What’s the timeline?
🟥 Through June: diesel is expected to stay around $5.60/gallon�🟧 Late Summer (Q3): projected to drop closer to $5.00/gallon�🟨 Fall (Q4): expected to ease toward $4.59/gallon
For owner operators, fuel can make up 25–40% of total operating costs. A jump from $4.00 diesel to $5.60 can quickly turn a profitable week into a break-even one.
Leave a comment below on what you are seeing with diesel prices around the country!