Diesel prices in Montana have surged to near-record levels due to the U.S.-Iran conflict that began in February. This significant rise impacts farmers, truckers, and businesses reliant on diesel fuel. GasBuddy reports the average diesel price in Montana hit $6.23 per gallon Wednesday, just shy of the record $6.31 set on Sept. 24, marking a $2.58 increase from the previous year.
Montana farmers, facing tighter profit margins, are heavily affected. According to Eric Belasco, agricultural economics professor at Montana State University, farmers cannot easily stop using diesel-powered equipment despite rising costs. Competing in commodity markets, these producers have limited options to raise prices to offset increased diesel expenses. “A lot of farmers are going to see high input prices, and there’s not a whole lot you can do with that,” Belasco stated. “So a lot of them are eating the cost at the farm level.”
Nationally, the U.S. Department of Agriculture projects that American farmers will spend $4.8 billion more on fuel in 2026, a 29% increase over the previous year. Diesel is crucial not only for agriculture but also for trucking and rail freight, with high prices contributing to higher freight costs nationwide.
Patrick De Haan, GasBuddy’s head of petroleum analysis, attributes the diesel price surge to global refinery disruptions, especially in Russia, China, and the Middle East, which are also driving up crude oil prices. U.S. distillate inventories, including diesel, are predicted to remain low through 2027. Russian diesel supply disruptions, largely due to Ukrainian attacks on refineries, exacerbate the situation.
De Haan notes that while Montana and other interior states have some insulation from major increases due to their limited access to overseas markets, diesel prices are likely to stay high unless geopolitical tensions ease. Predicting future prices remains challenging. “I have no expectations. The markets are telling me I can’t, really,” De Haan said. “We could go a dollar a gallon higher, we could go a dollar a gallon lower. I have no idea which of those it’s going to be.”
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