New Yorkers Face Surging Online Shipping Costs as Diesel Prices Skyrocket

Got story updates? Submit your updates here. ›

Diesel prices in the U.S. have surged roughly 50% since the start of the conflict in Iran on February 28, 2026, with the national average for a gallon of diesel now around $5.62 compared to $3.76 before the war began. This rapid spike is primarily attributed to the closure of the Strait of Hormuz, which has severely constrained global oil supplies. As diesel powers the majority of U.S. freight, this increase acts as a hidden "tax" on almost all physical goods, leading major carriers like Amazon, FedEx, USPS, and UPS to add significant fuel surcharges to offset the rising costs.

Why it matters

The surge in diesel prices and resulting shipping cost increases will significantly impact online shoppers in New York, as they will have to pay more for their deliveries. This could lead to changes in consumer behavior, with some shoppers potentially reducing their online purchases or seeking out local retailers to avoid the higher shipping fees.

The details

Amazon will be adding a 3.5% surcharge for third-party sellers due to rising fuel prices, effective April 17 and expanding on May 2. The USPS is seeking an 8% temporary price hike for Priority Mail and package deliveries, effective April 26. Major carriers have also significantly increased their fuel surcharges as of April 2026, with UPS domestic ground at 27%, domestic air at 30.75%, and international air import at 40.25%. FedEx's ground and home delivery surcharge is 26.5%, and its international fuel surcharge is up to 38.75% depending on specific fuel price triggers. DHL's Express Air surcharge is 39% for April 2026, and its eCommerce (International) surcharge is 25.75%.

• The conflict in Iran began on February 28, 2026.
• Diesel prices have surged roughly 50% since the start of the conflict.
• The national average for a gallon of diesel is currently around $5.62, compared to approximately $3.76 just before the war began.
• Amazon's 3.5% surcharge for third-party sellers goes into effect on April 17 and expands on May 2.
• The USPS's 8% temporary price hike for Priority Mail and package deliveries goes into effect on April 26, 2026.

What they’re saying

What’s next

The U.S. Transportation Secretary, Pete Buttigieg, is expected to address the impact of rising diesel prices on the shipping industry and potential government interventions during a press conference on April 15, 2026.