‘Not Worth The Trip’—Rising Fuel Prices Force U.S. Food Trucks To Cut Routes

Gasoline prices in California jumped to $5.20 per gallon a 12% increase from the week before after US-Israeli air strikes on Iran began on February 28 2026 according to a Tucson.com report Nationally the average price for regular gasoline rose to $3.48 a gallon up from $2.98 before the conflict a 17% increase overall The spike reflects crude oil prices climbing past $110 a barrel levels not seen since 2022 as the war disrupted Middle Eastern energy supplies.

Food-Truck Owners Feel the Pinch

Tucson food-truck operators describe a direct hit to their bottom line as fuel for generators and vehicles climbs One local owner told KOLD News on March 12 2026 I HAVE TO PUT GAS IN MY GENERATOR USED TO COST $10 NOW IT’S reflecting that his fuel expense has more than doubled since the Iran conflict began Another vendor said rising diesel and propane prices are forcing difficult choices between raising menu prices or absorbing losses.

Diesel Costs Jolt Logistics Sector

Diesel the fuel that powers most long-haul trucks climbed to $4.65 a gallon across the United States in early March 2026 a 23% increase since the US-Israeli strikes on Iran started Petroleum analyst Patrick De Haan of GasBuddy warned on X that Can’t underscore what a massive jolt this is to the logistics trucking agriculture sectors noting that higher diesel costs ripple through supply chains and raise operating expenses for fleets that move goods nationwide.

Grocery Prices May Rise as Transport Costs Climb

Higher fuel costs threaten to raise grocery prices because food moves to stores on diesel-powered trucks and ships said David Ortega a professor of food economics and policy at Michigan State University Ortega explained that if oil prices stay elevated for a month or more fresh produce that requires rapid transport could see price hikes sooner than packaged goods which are less perishable He added that while on-farm fuel use is a small share of food costs transportation and processing both energy-intensive account for a larger portion of what consumers pay at the checkout.

Economists Warn of Inflation Surge

Economists estimate that crude oil prices have risen from about $67 a barrel before the conflict to roughly $95 today a 42% increase that could lift U.S. inflation from 2.4% in January to 3% or higher in the coming months according to a JPMorgan analysis cited by Tucson.com Gregory Daco chief economist at EY-Parthenon said the shock would be significant adding If the conflict is only in the short run companies will eat it but a prolonged war would force price pass-through to consumers.

Monthly Inflation Could Hit 1%

Daco went further estimating that the bump in gas prices could push monthly inflation to as high as 1% in March 2026 which would be the highest monthly increase in four years and that yearly inflation would near 3% if the trend continues He warned that the longer the Iran conflict lasts the more significant the economic shock becomes potentially affecting everything from transportation costs to household budgets.

Shippers May Absorb Costs Initially

Ed Anderson a professor of supply chain and operations management at the University of Texas’s McCombs School of Business cautioned that shippers may initially absorb higher fuel expenses rather than immediately passing them on to customers He noted that while this buffers consumers in the short term it squeezes carrier margins and could lead to delayed price increases once costs become unsustainable for transporters.

UK Business Owner Squeezed by Fuel Rise

In the United Kingdom business owner Meek told the BBC on March 14 2026 that fuel prices had risen by about 9 to 10 pence per litre since last month leaving her family-firm established around 1970 struggling to cover costs She said It’s a very difficult discussion to have because currently everything is escalating noting that while she must raise prices to stay viable her staff are demanding higher wages and clients operate on tight budgets.

Ride-Sharing Services Feel Pressure

Ride-sharing services also report increased operational costs as drivers face higher fuel expenses Companies like Uber and Lyft have begun implementing temporary fuel surcharges in certain markets passing some costs directly to consumers This additional expense layer further strains household budgets already pressured by rising grocery and transportation costs

Outlook Hinges on Conflict Duration

The outlook for food-truck operators and the broader economy hinges on how long the Iran conflict persists If hostilities continue analysts expect fuel prices to remain volatile keeping pressure on small businesses that rely on cheap mobility Conversely a diplomatic resolution or de-escalation could allow crude markets to stabilize easing the cost burden on trucks generators and the supply chains that feed America’s neighborhoods.

Sources:
“US and Israel launch ‘pre-emptive’ attack against Iran.” Reuters, February 28 2026.
“How the spike in gas prices is jolting California’s giant economy.” Los Angeles Times, March 12 2026.
“AAA: Gas averages $3.47 nationally, $5.20 in California as prices jump.” Bakersfield Now, March 8 2026.
“UK business owner cites fuel price surge as family firm struggles.” BBC, March 14 2026.