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

The U.S. Energy Information Administration's October Short-Term Energy Outlook says U.S. retail diesel averaged $6.29 per gallon in September, driven by higher crude oil prices and rising crack spreads, the margin refiners earn turning crude oil into fuel. EIA points to:

• Middle East supply constraints. EIA says oil production and exports from the region remain constrained by the hostilities there. It assumes convoys through the Strait of Hormuz and workarounds such as bypass routes and ship-to-ship transfers will let the region's production and exports generally increase.
• Extreme tightness in diesel markets. EIA says refiners' need to meet diesel demand is adding upward pressure on crude oil prices.
• Low inventories. East Coast distillate fuel inventories, which include diesel, fell 32% below their five-year seasonal average in September.

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.

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

EIA expects retail diesel prices to average about $4.50 a gallon in 2027. It also expects East Coast distillate inventories to stay about 20% below their 2021–2025 average through the coming winter, then gradually recover as global supply constraints ease. EIA's next outlook is scheduled for Nov. 10, 2026.

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?

The U.S. Energy Information Administration says September's prices were driven by higher crude oil prices and rising refining margins, with Middle East oil supply constrained by hostilities in the region and diesel markets extremely tight. East Coast distillate inventories were 32% below their five-year seasonal average in September.

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 come down?

EIA's October outlook forecasts U.S. retail diesel averaging about $4.50 a gallon in 2027, down from $6.29 in September 2026.

Sources: U.S. Energy Information Administration Gasoline and Diesel Fuel Update, AAA Tennessee Gas Prices, EIA Short-Term Energy Outlook, Oct. 6, 2026, 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.*