Iowa Fuel Prices Surge, Diesel Hits $3.53 per Gallon

State gas prices jump 14 cents, still below 2025 levels, as national average rises to $2.98

Published on Feb. 27, 2026

Got story updates? Submit your updates here. ›

According to the latest report from the Iowa Department of Agriculture and Land Stewardship (IDALS) and AAA-Iowa, gas prices in the state rose 14 cents to an average of $2.59 per gallon as of February 25, 2026. Diesel prices also increased 13 cents to $3.53 per gallon, remaining 22 cents below the national average of $3.75. Heating fuel prices were mixed, with propane falling 2 cents to $1.61 per gallon while home heating oil rose 8 cents to $3.04.

Why it matters

Fluctuating fuel prices have a significant impact on Iowa's economy, affecting everything from consumer spending to transportation and heating costs for businesses and households. The latest increases, while still below 2025 levels, could put pressure on family budgets and the state's agricultural and manufacturing sectors.

The details

According to the report, the average price for a gallon of regular unleaded gasoline in Iowa rose 14 cents to $2.59 as of February 25. This is still 38 cents below prices from a year earlier. The national average gas price also increased, rising 6 cents to $2.98 per gallon. Diesel prices in Iowa jumped 13 cents to $3.53 per gallon, 8 cents above last year's level but 22 cents below the national average of $3.75. At the Des Moines Terminal, prices for various fuel blends ranged from $1.82 for E10 to $2.74 for ULSD#1.

  • As of Wednesday, February 25, 2026

The players

Iowa Department of Agriculture and Land Stewardship (IDALS)

The state agency that tracks and reports on fuel prices in Iowa.

AAA-Iowa

The Iowa affiliate of the national automobile association that also monitors and reports on fuel prices.

Got photos? Submit your photos here. ›

The takeaway

The latest fuel price increases in Iowa, while still below 2025 levels, could put strain on household budgets and the state's key economic sectors like agriculture and manufacturing. Closely monitoring these fluctuations will be crucial for businesses and policymakers to manage the impact on the state's economy.