California’s Fuel Costs Are Feeding Food Inflation 

High diesel and gasoline prices in California aren't just a pain at the pump — they're driving your grocery bill through the roof. Every carrot stick, loaf of bread and hamburger patty takes a long, expensive ride before it hits your plate, and diesel is fueling that costly journey. Farmers use diesel to power essential equipment such as irrigation pumps, plows, tractors, front loaders and harvesters. Beyond the fields, diesel fuel is crucial for transporting food products from farms to processing facilities and then to retailers. Higher diesel costs lead to increased transportation expenses, which add to the prices Californians pay at grocery stores, which are the highest prices in the contiguous U.S. 

California taxes and environmental program fees can add nearly $1.60 to each gallon of diesel fuel used for transportation. According to AAA, diesel prices in California were $1.42 more than the national average as of April 9. Even though diesel used for off-road, on-farm operations are exempt from state sales tax, California's onerous blend of environmental regulations and fuel standards add to the final cost, creating the most expensive diesel prices in the continental U.S. Every mile food shipments move adds up to a massive hidden tax on your grocery cart. 

California Diesel Ave. Price/Gal as of 4/9:

$5.04

National Diesel Avg. Price/Gas as of 4/9:

$3.62

Price Avg. CA Household Spends on Groceries:

$300/week

Price Avg. US Household Spends on Groceries:

$270/week

These policies ripple through the entire supply chain, making food more expensive for all Californians. While environmental safeguards are important considerations, households breathe easier when they're not struggling to put food on the table. 

When fuel gets more expensive, food does too. Until lawmakers can strike a balance between sustainability and affordability, expect grocery bills to keep climbing — one gallon of diesel at a time. 

Want to know more about California’s high cost of food?

Visit our page: