Businesses across the U.S. are introducing fuel surcharges for product deliveries as oil prices climb sharply due to the ongoing Iran war. President Donald Trump’s military operations alongside Israel in the Middle East continue to drive up costs, impacting Americans directly through higher prices at the pump and beyond.
Gas Prices Hit Multi-Year Highs
The national average for regular gasoline now exceeds $4 per gallon, marking the highest level since 2022, according to the American Automobile Association. Diesel fuel averages around $5.45 per gallon, exacerbating transportation expenses nationwide.
Grocery Costs Climb with Fuel Expenses
Rising fuel prices threaten to increase grocery bills, as fuel powers crop production, livestock rearing, and food transport to stores and restaurants. For instance, the wholesale price of fresh salmon has risen from $6.25 per pound in February to $6.48 per pound.
U.S.-Israeli strikes, which began in late February and persisted through March, have targeted at least 10,000 sites, according to Central Command. With no resolution in sight, these operations fuel ongoing oil market volatility.
Salmon Supply Chain Feels the Strain
Janice Schreiber of Expana, a market data provider for agriculture and food sectors, highlights multiple fuel surcharges along the salmon delivery process. “It all has to be done rather quickly, and at each of the different points, there is a fuel surcharge being added,” Schreiber stated. This surge coincides with peak demand ahead of Easter.
Small Businesses Bear Heavy Burden
Small enterprises face acute pressure from escalating fuel costs, compounded by recent economic disruptions. Last month, the Supreme Court invalidated broad import tariffs, yet recovery remains challenging.
Jesse Filion, who runs a family farm in Walterboro, South Carolina raising chicken, pigs, and cattle for home deliveries and 20 local restaurants, implemented a $5 fuel surcharge. “It is a way to be transparent, but also to cover some of the increased fuel prices that we’re seeing,” Filion explained.
Broader Food Industry Impacts
Grocery industry analysis indicates fuel-related costs comprise 15 to 30 percent of total expenses for some food products. Historical trends show that a 10 percent increase in fuel prices typically raises food prices by 2 to 3 percent.
USPS Adjusts Rates to Match Costs
Beyond food sectors, the U.S. Postal Service introduced temporary rate hikes last week to align transportation expenses with market realities. The 8 percent increase applies to Priority Mail Express, Priority Mail, USPS Ground Advantage, and Parcel Select services.
