Rising Diesel Prices Threaten to Increase Costs Across Texas

Experts warn that higher fuel costs will ripple through groceries, electronics, and construction as the war in Iran continues.

Published on Mar. 10, 2026

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As the war in Iran drives up diesel prices in Texas, experts warn that the higher fuel costs will lead to increased prices across a wide range of consumer goods and services. Diesel prices have already risen from an average of $3.24 per gallon before the conflict to around $4.80 per gallon, and further increases are expected to impact the cost of transporting goods by truck, which is how most consumer products are moved in the U.S.

Why it matters

The rise in diesel prices will put upward pressure on the prices of many everyday goods and services, as the increased transportation costs get passed on to consumers. This could exacerbate the already high inflation rates seen in recent years, making it more difficult for Texans to afford necessities like groceries and construction materials.

The details

Trucks rely on diesel fuel to transport the majority of consumer goods in the U.S., so when diesel prices rise, the cost of shipping those goods also increases. Experts predict the first price increases will be seen in groceries, followed by electronics and construction materials, as the higher fuel costs get passed on to consumers.

  • Before the conflict in Iran, diesel averaged $3.24 per gallon in Texas.
  • By Tuesday, diesel prices in Texas were hovering around $4.80 per gallon.

The players

Bruce Bullock

Director of the Maguire Energy Institute at Southern Methodist University.

David Quigley

Economics professor at the University of Texas at Arlington.

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What they’re saying

“When fuel costs go up, that automatically gets passed through to whoever is paying for the shipment.”

— Bruce Bullock, Director, Maguire Energy Institute (CBS News)

“Since trucks are used to ship a lot of goods in the U.S., that's going to feed through. The shipping costs go up, and that's going to put upward pressure on a lot of goods.”

— David Quigley, Economics Professor (CBS News)

What’s next

Experts warn that if the conflict in Iran continues, diesel prices could peak near $6 per gallon, similar to the levels seen during the war in Ukraine, which could further drive up inflation.

The takeaway

The rising cost of diesel fuel due to the war in Iran is expected to have a ripple effect across the Texas economy, leading to higher prices for a wide range of consumer goods and services. This underscores the vulnerability of the state's economy to global energy market disruptions and the importance of finding ways to mitigate the impact of such shocks on Texans' cost of living.