Diesel prices are climbing, putting additional pressure on the cost of moving goods across the country. According to the Association of American Railroads’ The Signal newsletter, citing data from the U.S. Energy Information Administration (EIA), diesel reached $6.53 per gallon on Sept. 21, the highest nominal diesel price on record.

EIA points to high crude oil prices, tight global supplies of diesel and other distillates, and low U.S. inventories as factors behind the increase. Higher diesel prices can translate into higher freight costs, with those expenses potentially making their way through supply chains to businesses and consumers.

The increase also highlights freight rail’s fuel efficiency. According to AAR, railroads can move a ton of freight nearly 500 miles on a gallon of fuel, making rail approximately three to four times more fuel-efficient than trucking on average.

AAR also reports that inflation-adjusted rail rates were 46 percent lower in 2025 than in 1981 and have remained essentially flat over the past five years.

As higher diesel prices add pressure to transportation costs, freight rail’s ability to move large volumes of goods efficiently continues to play an important role in the nation’s freight network.

Source: Association of American Railroads, The Signal