Gas Prices Surge Past $4 Nationwide as Diesel Costs Strain Northwest Suppliers

Portland fuel company warns smaller stations could struggle with rapidly escalating fuel surcharges.

Apr. 1, 2026 at 1:57am by Ben Kaplan

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For the first time in four years, the national average price for a gallon of gas has surpassed $4, with prices even higher across the Northwest. Fuel suppliers say the spike is being driven largely by rising diesel costs, which have surged since the start of the Iran war. A Portland-based fuel supplier, Star Oilco, says diesel prices have increased by about $2 per gallon in recent months, putting pressure on independent gas stations trying to keep up with the rapidly changing costs.

Why it matters

The elevated gas and diesel prices could persist for months, putting strain on small businesses and independent gas stations that are unable to quickly adjust to the rapid price swings. This comes at a time when the economy is still recovering from the impacts of the Iran war, making it even more challenging for consumers and businesses to absorb these higher fuel costs.

The details

Star Oilco, a 90-year-old Portland fuel supply company, says it has seen diesel prices reach as high as $6.49 per gallon at some truck stops in Washington. The company is adjusting delivery schedules to try to secure better pricing, but the owner warns that the $2 increase in diesel could put certain businesses out of operation if they are unable to quickly pass along the higher costs.

  • The national average gas price surpassed $4 per gallon for the first time since 2022.
  • Diesel prices have increased by about $2 per gallon in recent months.

The players

Star Oilco

A 90-year-old Portland-based fuel supply company that runs about 200 fuel trucks to supply gas stations and power generators throughout the region.

Mark Fitz

The owner of Star Oilco, who says the company is absorbing some of the increased costs to protect long-term customers but worries not all businesses will survive the price volatility.

Karoline Leavitt

The White House press secretary, who stated that gas prices will plummet back to multi-year lows once 'Operation Epic Fury' is complete.

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What they’re saying

“Diesel is basically a backup for everything of our civilization.”

— Mark Fitz, Owner, Star Oilco

“Prices are higher than I thought they'd be.”

— Mark Fitz, Owner, Star Oilco

“The highest I've seen with my own eyes is $6.49 a gallon for diesel at a truck stop in Washington. That made me take a look.”

— Mark Fitz, Owner, Star Oilco

“Those fuel surcharges are escalating pretty rapidly. They're coming up a lot. People who are ahead of that will be fine. People who may miss that for a few weeks, they may burn thousands of dollars they won't be able to get back.”

— Mark Fitz, Owner, Star Oilco

“When Operation Epic Fury is complete, gas prices will plummet — back to the multi-year lows American drivers enjoyed before these short-term disruptions.”

— Karoline Leavitt, White House Press Secretary

What’s next

Industry experts warn the elevated prices could persist for months, putting pressure on independent gas stations trying to keep up with rapidly changing costs. The White House has stated that gas prices will return to multi-year lows once 'Operation Epic Fury' is complete, but the timeline for that remains unclear.

The takeaway

This gas price surge highlights the vulnerability of small businesses and independent gas stations to rapid changes in fuel costs, especially during times of economic uncertainty. It underscores the need for greater supply chain resilience and the ability to quickly adapt to volatile market conditions.