The national average for on-highway diesel rose 9.7 cents last week to $6.276 a gallon, now $2.66 higher than a year ago. Every U.S. region posted a diesel increase, but the West Coast was the standout — California alone reached $8.242, up 15.1 cents on the week and $3.34 above last October. The West Coast excluding California hit $6.659 after a 15.6-cent jump, and the Rocky Mountain region climbed to $6.422.
For produce, this directly pressures freight costs on long-haul lanes out of California and the Pacific Northwest heading into the peak holiday shipping season. Even the relatively cheaper Lower Atlantic region — covering Florida, Georgia, and the Carolinas — sits at $5.740, still up 9.5 cents on the week. Fuel surcharges are likely to follow the increases.
With no relief in sight before the next EIA update on October 27, watch for carriers to begin renegotiating spot rates on California-origin loads. Buyers managing cost-sensitive holiday programs from the West should build freight cushion into their budgets now.