The 2027 Ram 2500 Power Wagon is set to become the first of Ram’s most capable trucks to offer a Cummins turbo-diesel, but the timing could prove difficult as diesel prices surge across the United States.

Since the start of the Iran War, fuel prices have climbed sharply, sending millions of American motorists searching for more fuel-efficient options. But the increase in gasoline prices has been far smaller than the jump at diesel pumps.

Diesel Prices Near Record Levels

On Wednesday, the national average price for diesel reached $5.6230 a gallon, according to AAA. That represents an increase of roughly 34 cents over the past month and nearly $2 a gallon more than the day before the bombs started falling over Tehran.

Diesel prices are also approaching the all-time record of $5.8159 set in June 2022. Pumps along some major highway routes through the Midwest have already surpassed $6 a gallon.

Although diesel-powered passenger vehicles have declined substantially over the past two decades, diesel remains central to commercial transportation. About 80% of the country’s freight is hauled by diesel-powered trucks and trains, according to the U.S. Bureau of Transportation Statistics.

Higher Diesel Costs Add to Inflation Pressure

John Kilduff, Founding Partner at Again Capital and an observer of global energy markets, described the surge in diesel prices as “an inflationary pulse” moving through the broader economy during a recent interview on CNBC.

Higher diesel costs can raise transportation expenses and increase the prices of goods ranging from food and clothing to construction materials used for new homes, stores and factories. Kilduff said the pressure on diesel is being driven by a global supply shortage colliding with demand from consumers, farmers and manufacturers.

“We need the Strait (of Hormuz) back open,” Kilduff said.

Higher diesel prices are also feeding into renewed inflation. With higher inflation “knocking on the door,” Kilduff said the Federal Reserve Board would not be able to cut interest rates.

“It’s definitely an inflation pulse,” Kilduff said.

Diesel Costs Reach the Food Supply

The impact is already visible at grocery stores. Ground beef averaged $6.89 a pound, according to U.S. Bureau of Labor Statistics CPI data, putting the price just a penny below the all-time record. Experts anticipate the record could be surpassed as the Labor Day holiday approaches, while prices are already up 12.6% year over year.

Drought and reductions in herd sizes have contributed to higher beef prices, but “high production costs” are identified as the major factor. Rising fuel prices tied to the Iran War add another layer of costs throughout the food supply chain.

That process begins with farmers growing corn in Iowa. Diesel-powered tractors prepare the fields and apply petroleum-based fertilizer, while diesel-powered combines harvest the crops. Diesel locomotives then transport feedstock to ranches across the country.

Diesel trucks also transport cattle to slaughterhouses and deliver packaged ground beef to supermarkets. At each stage, higher fuel prices add to the cost of the final product.

Farmers Face Higher Fuel and Fertilizer Costs

The pressure could increase as harvest season begins. Roughly 70% of American farmers said they were struggling to purchase all the largely petroleum-based fertilizer they needed this year, according to a nationwide survey by the American Farm Bureau Federation released April 14, 2026.

Farmers are already under financial stress and facing a shortage of migrant labor. They now also face the prospect of spending record amounts to operate their diesel-powered equipment while harvesting and processing crops.

That is likely to push food prices even higher, while some experts are also warning of shortages.

Fuel Supply Faces Additional Pressure

President Donald Trump has tried to downplay the effect of the Iran War on fuel prices, at times portraying higher costs at the pump in almost patriotic terms. But the administration faces another challenge as global fuel supplies fall to their lowest levels since 1996, when the global economy was far more dependent on fossil fuels.

The U.S. Strategic Petroleum Reserve, intended to provide a buffer when prices rise too quickly or too far, has reached its lowest level since December 1982, according to the U.S. Energy Information Agency. The current level follows the president’s decision to release more than 400 million barrels of crude from the reserve last spring.

U.S. refineries are producing record amounts of diesel, but the “crack price,” or the difference between the price of a barrel of crude oil and the refined product, has reached a new record because of international pressure on overall supply, according to Bloomberg.

The effective closure of the Strait of Hormuz has disrupted the shipment of 20% of the world’s petroleum. At the same time, almost daily Ukrainian drone attacks have succeeded in crippling production at Russian refineries, reducing the amount of diesel fuel Russia has been trading internationally.

Diesel Crisis Could Continue for Months

The Trump administration has sent mixed signals in recent weeks about negotiations with Iran, with the president at times suggesting that he is not rushing toward a settlement.

Even if a solution is reached, experts fear the current fuel crisis could continue. A report by tracking site Oilprice.com warned that shrinking inventories could prolong the crisis for months, driving diesel prices higher and intensifying inflation risks worldwide, particularly as winter approaches.

The ongoing war in Ukraine could further complicate the situation if the fighting remains unresolved, the publication said. Ukraine’s latest strategy involves increasingly intense drone attacks against Russian petroleum infrastructure.

Worldwide, the situation could “get ugly” before it improves, Eugene Lindell, head of refined products at consultancy FGE NexantECA, warned in an interview with Bloomberg.

What It Means for the 2027 Ram 2500 Power Wagon

The combination of rising fuel prices and broader economic pressure could leave American motorists searching for more fuel-efficient transportation. But the higher diesel prices climb, the less attractive diesel models such as the 2027 Ram 2500 Power Wagon may become.

Sam Abuelsamid, an analyst at Telemetry Research, said that as consumers are forced to spend more on fuel, it will become more difficult for them to spend money on new vehicles at all.