Record Diesel Prices Squeeze Murfreesboro Retailers and Contractors

Diesel topped $6 a gallon in Tennessee this week. Murfreesboro business owners say retail and parts of the construction industry are feeling the rising cost of shipping and logistics most.

Murfreesboro business owners are feeling a pinch, and many point to the same culprit: diesel. When OnlyInMurfreesboro asked its Facebook followers how rising costs are affecting local businesses, retail and certain parts of the construction industry stood out as some of the hardest hit, with higher shipping and logistics costs showing up across their operations.

The timing lines up with a historic run in fuel prices. Diesel is now more expensive than it has ever been in the United States.

Diesel Prices Hit an All-Time High

The U.S. Energy Information Administration (EIA) reported a national average on-highway diesel price of $6.285 per gallon for the week of September 14, 2026. That is the highest weekly price on record, up nearly 32 cents in a single week and about $2.55 more than the same week a year ago.

Tennessee is right there with the rest of the country. According to AAA, the statewide diesel average reached $6.01 per gallon on September 16, 2026, and the Nashville metro area, which includes Murfreesboro, averaged $6.05.

Tennessee diesel average, according to AAA:

• September 16, 2026: $6.01 per gallon
• One week ago: $5.67 per gallon
• One month ago: $5.14 per gallon
• One year ago: $3.41 per gallon

That is a jump of roughly 76 percent in twelve months, and about 87 cents in the last month alone. Regular gasoline has climbed as well, to about $4.00 a gallon statewide, but diesel has risen much faster.

Why Diesel Costs So Much Right Now

National reporting points to several global supply problems stacking on top of each other:

• Conflict in the Middle East. Fighting involving Iran has severely disrupted tanker traffic through the Strait of Hormuz for months, cutting into the global supply of crude oil and refined fuels.
• Russian refinery disruptions. Ukrainian strikes on Russian refineries have sharply limited Russia's ability to export diesel, removing a major source of supply from world markets.
• Refineries running near capacity. U.S. refineries have little room to produce more, and they are also balancing diesel output against jet fuel.

Unlike gasoline, diesel demand does not drop much when prices rise. Trucks still have to deliver freight, farmers still have to run equipment, and construction crews still have to move dirt. That is why the price shock ripples so quickly through the rest of the economy.

Why Retail Is Feeling It

Almost everything on a store shelf arrives by truck, and trucks run on diesel. Fuel is one of the largest operating expenses for a trucking company, and most freight carriers pass it along through fuel surcharges that rise automatically as the weekly diesel price climbs.

For a local retailer, that shows up as higher freight charges on every inbound shipment, higher delivery minimums, and suppliers raising wholesale prices to cover their own transportation costs. Small shops generally do not have the buying power of national chains to negotiate those costs away, so they are left to either absorb the increase or pass it on to customers.

Rutherford County's location makes this especially relevant. The county sits along Interstate 24 and Interstate 840 and is home to a large concentration of warehouse and distribution operations, so a great deal of the region's economy is tied to moving goods by truck.

National analysts expect the effect to spread. GasBuddy's Patrick De Haan told CBS News that if diesel stays elevated for more than about six weeks, shoppers should expect higher prices on goods like furniture, vehicles, and refrigerated foods such as fresh produce and seafood. CBS News also reported, citing Labor Department data, that diesel accounted for more than a third of the increase in producer goods prices in August.

Why Some Construction Trades Are Hit Hard

Construction runs on diesel. Excavators, dump trucks, concrete mixers, skid steers, and generators all burn it, and nearly every building material arrives on a truck. Trades that depend on heavy equipment and frequent material deliveries, such as site work, grading, paving, and concrete, carry the most exposure.

Paving contractors face a double hit because asphalt itself is a petroleum product. Ready-mix concrete suppliers and aggregate haulers typically add fuel surcharges as well, which means a project bid a few months ago may cost noticeably more to build today.

Many contractors are also locked into fixed-price contracts signed before diesel spiked. When fuel costs rise mid-project, that difference often comes out of the contractor's margin rather than the customer's invoice.

What Comes Next

Much depends on how quickly global supply disruptions ease. Economists note that many businesses are currently absorbing part of the increase through existing supplier contracts. As those contracts renew, more of the cost is likely to reach consumers. Capital Economics economist Thomas Ryan told CBS News that households will likely have to weather elevated prices through the end of the year.

For Murfreesboro residents, one of the most direct ways to help is to keep shopping locally. Local retailers and contractors are dealing with the same fuel prices as national companies, but with far less room in their budgets to absorb them.

Frequently Asked Questions

How much is diesel in Murfreesboro right now?

AAA reported a Nashville metro diesel average of $6.05 per gallon and a Tennessee statewide average of $6.01 per gallon on September 16, 2026. Prices at individual Murfreesboro stations vary.

Why are diesel prices so high in 2026?

Diesel prices are being driven up by disruptions to tanker traffic through the Strait of Hormuz tied to the conflict involving Iran, attacks on Russian refineries that have limited Russian diesel exports, and U.S. refineries operating near full capacity.

How do diesel prices affect local businesses?

Nearly all goods are shipped by truck. Freight carriers add fuel surcharges as diesel rises, so retailers pay more to receive inventory, and contractors pay more to run equipment and have materials delivered.

Which Murfreesboro businesses are hit hardest by diesel prices?

Based on responses from OnlyInMurfreesboro's Facebook followers, retail and certain construction sectors are among the hardest hit because of rising shipping and logistics costs. Trades that rely on heavy equipment and frequent deliveries, such as site work, paving, and concrete, have the most exposure.

Will diesel prices raise what I pay at the store?

Analysts expect so if prices stay high. Many businesses are absorbing costs under existing contracts for now, but increases are likely to reach consumers over time, especially for heavy items and refrigerated foods.

Sources: U.S. Energy Information Administration Gasoline and Diesel Fuel Update, AAA Tennessee Gas Prices, CBS News, and responses from OnlyInMurfreesboro Facebook followers.

*Photo: Zetong Li via Unsplash.*

*Is your Murfreesboro business feeling the impact of fuel prices? Share your experience with us on Facebook.*