LOS ANGELES — The average price of a gallon of diesel in California reached $8.35, according to the American Automobile Association. This figure represents a 32% premium over the national average, which stood at $6.32 per gallon.

Jagroop Singh Deol operates two trucks based in Fresno, California. His full tank fuel cost increased from $1,000 at the start of the year to over $1,600. He said the business was no longer profitable. He downsized his fleet from five trucks to two.

Deol described the volatility of the industry. He said trucking wasn’t a stable business. He noted that consumers might see minor price adjustments at the grocery store.

He said a price increase on items like lettuce might go unnoticed by shoppers. He said such changes could happen within a week.

Avninder Singh is the chief executive of Roadies, a trucking company based in Bakersfield, California. His cost to fill a truck tank increased from $1,200 to $2,400. Roadies' monthly fuel costs increased to $450,000. He reduced his fleet size to 100 trucks in the last year.

He said the company had no profit margin and was operating without making money. He stated that the current pricing structure was unsustainable for domestic carriers.

He said American trucking companies could not survive at $8 a gallon. He said fuel costs were consuming all expenses. He added that the company was losing money. To retain staff, he increased driver pay from $0.45 to $0.80 per mile. Hauling rates for Walmart increased from $2.50 to $4.50 per mile.

At least 16 freight companies across the United States filed for bankruptcy between August and September. Small-business truckers make up more than 90% of trucking companies in America, according to the Owner-Operator Independent Drivers Association. Lewie Pugh, executive vice president of the association, commented on the disparity between carrier margins and energy sector earnings. "While big oil companies have seen their profits nearly double this year, the sharp increase in diesel cost has quickly eaten up what little margin mom-and-pop trucking businesses have left," Pugh said.

Spot prices paid for transporting goods have been increasing since May. The overall volume of shipments at the ports has remained flat. Angel Diaz, co-owner of JD & LA Trucking, observed diesel selling for $8.38 per gallon at Los Angeles-area fuel stations. JD & LA Trucking operates 20 trucks hauling goods from the ports of Long Beach and Los Angeles.

The Group of Seven nations agreed on October 2 to release 100 million barrels of emergency oil reserves over the next four months. Governor Gavin Newsom allowed the early introduction of cheaper winter-blend gasoline to be sold at gas stations in California.

The Department of Transportation removed 28,000 drivers for failing their English-speaking test. The agency canceled more than 30,000 licenses issued to immigrant drivers. The Department of Transportation closed hundreds of commercial driver training schools. The U.S. Department of Transportation withheld $40.6 million in federal funding from California in 2025 due to non-compliance with English Language Proficiency (ELP) standards for commercial drivers, according to a Department of Transportation document.

The Department of Transportation enforced ELP requirements that led to 26,000 drivers being placed out of service since January 2025, according to official Department of Transportation reports. In January 2025, the Department of Transportation reported that 26,000 commercial drivers were placed out of service for failing to meet English language proficiency requirements, as part of its ongoing safety enforcement efforts. The Department of Transportation has historically enforced strict safety regulations for commercial drivers, including the requirement for English language proficiency (ELP) to ensure clear communication on roadways.

Shelley Simpson is the CEO of J.B. Hunt. Trucking employment hit a record high in 2022, according to Bureau of Labor Statistics industry data. Long-haul trucking employment reached a 12-year low earlier this year.

The Transportation Department published a rule titled The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule III for Model Years 2022 to 2031 Passenger Cars and Light Trucks on 2026-09-30. She said truck supply had decreased due to safety enforcement.

Why It Matters

The surge in diesel costs places pressure on small-business truckers, who constitute more than 90% of trucking companies in America. With monthly fuel bills reaching hundreds of thousands of dollars for mid-sized fleets and per-tank costs doubling, operators report operating without profit margins. This financial strain coincides with a broader contraction in the labor market, as long-haul trucking employment fell to a 12-year low after hitting record highs in 2022.

Federal enforcement actions have further reduced the available driver pool. The Department of Transportation removed 28,000 drivers for failing English language proficiency tests and canceled over 30,000 licenses issued to immigrant drivers between 2024 and 2025. These regulatory changes, combined with rising operational costs, have led to fleet reductions and increased shipping rates for major retailers. While international bodies have moved to release emergency oil reserves, the immediate impact on California pump prices remains a critical factor for supply chain stability.

Timeline

The Department of Energy's Energy Information Administration (EIA) reported that California diesel prices reached $8.18 per gallon on September 28, 2026, which is 64.2% higher than the same period the previous year.

On October 7, 2026, California diesel prices were recorded at 32% above the national average. On the same date, data showed California diesel prices increased more than 60% from the previous year.

What's New

Jagroop Singh Deol, a Fresno-based trucking operator, is directly affected by the high diesel prices in California.

He operates two gas-guzzling rigs and has downsized his fleet from five to two due to the financial pressure caused by the rising diesel costs. Deol has a long history in the industry, having transitioned from an owner to a driver during the 2008 recession and later profiting during the 2020 pandemic boom before facing financial strain due to rising diesel costs.