U.S. on-highway diesel averaged $6.352 per gallon in the week ending October 26, up 7.6 cents from the prior week and the third consecutive weekly increase. Diesel has climbed more than 17 cents since October 12 and sits $2.63 above where it was a year ago. California diesel hit $8.155 per gallon, the only state above $8, and is $3.22 more expensive than a year ago — the steepest annual increase of any region tracked by EIA. The Lower Atlantic region, covering Florida, Georgia, and the Carolinas, saw the sharpest weekly gain at 15 cents.
For produce shippers and carriers, rising diesel costs translate directly into higher fuel surcharges on every lane. The timing is particularly relevant heading into the peak holiday shipping window, when freight demand is already elevated. Florida and Georgia's fall and winter vegetable season is ramping up precisely as Lower Atlantic fuel costs jump, which could amplify landed costs on tomatoes, peppers, and cucumbers.
Buyers managing freight budgets should expect fuel surcharges to increase on November invoices. Worth monitoring whether diesel continues climbing through the holiday peak or finds a ceiling in the coming weeks.