Rising Diesel Costs Threaten Fed Stability and Consumer Budgets

WHO:

Bloomberg - Joe Quinlan, Head of CIO Market Strategy at Merrill and Bank of America.

The Christian Science Monitor - Mark Finley, energy fellow at the Baker Institute at Rice University; Benjamin L. Schmitt, senior fellow at the University of Pennsylvania; Thomas Kloza, Gulf Oil's chief energy adviser; Adm. Daryl Caudle, U.S. Navy.

The Christian Science Monitor - President Donald Trump; Ukrainian President Volodymyr Zelenskyy.

WHAT:

Bloomberg - The Federal Reserve raised its benchmark rate by a quarter point.

The Christian Science Monitor - The average national cost of diesel hit a record high of $6.45 per gallon, a 74% increase over the previous year.

The Christian Science Monitor - U.S. refineries are operating at nearly 97% capacity.

The Christian Science Monitor - The U.S. is exporting about 4.1 million barrels of crude oil per day.

The Christian Science Monitor - Retail food prices are expected to rise 2% to 4% when fuel costs increase by 10% to 15%.

WHERE:

The Christian Science Monitor - Diesel prices were displayed at a gas station in Minneapolis.

The Christian Science Monitor - The Strait of Hormuz, a significant oil transport route.

WHEN:

The Christian Science Monitor - Diesel prices are expected to remain high throughout the fall.

The Christian Science Monitor - A diesel export ban was proposed on September 15.

WHY:

The Christian Science Monitor - Rising diesel prices are attributed to geopolitical conflicts, including the Russia-Ukraine war and the Iran war, which have disrupted oil flows.

The Christian Science Monitor - The closure of the Strait of Hormuz has led to rising global prices and market instability.

HOW:

The Christian Science Monitor - President Trump urged President Zelenskyy to call off strikes against Russian oil refineries to prevent an energy crisis.

The Christian Science Monitor - Companies that rely on diesel transport pass increased costs to consumers through gradual price increases.

(UPDATED September 19, 2026 16:00 UTC)

The Federal Reserve has raised its benchmark interest rate by a quarter point, while the average national cost of diesel has surged to a record high of $6.45 per gallon, marking a staggering 74% increase over the past year. U.S. refineries are running at nearly full capacity, exporting about 4.1 million barrels of crude oil daily, and rising diesel prices are expected to remain high throughout the fall due to geopolitical conflicts, including the Russia-Ukraine war and tensions in the Strait of Hormuz. In response to these challenges, President Trump has urged Ukrainian President Zelenskyy to halt strikes on Russian oil refineries in an effort to avert an energy crisis.