How Record Diesel Prices Are Shaping Used Equipment Purchases

“Every hour a machine runs on a jobsite costs contractors more than they planned.”

Rising diesel prices are raising concerns across the US, especially in the heavy equipment industry, where fuel is a major part of any project’s operating cost. Contractors who are already running larger projects are in a tense mood, as continuously rising diesel prices will break their overall budgets. Currently, diesel is sitting at $6.34 per gallon, which is making contractors rethink and revise their strategies.

How High Have Diesel Prices Gone?

Diesel prices are higher than they have ever been. AAA’s national average hit a record $6.53 a gallon on September 22, and distillate inventories were about 13% below the five-year average. By October 8, the average was $6.28, still about $2.60 higher than a year earlier.

On the other hand, diesel at the refinery level increased 77.8% from August 2025 to August 2026, according to the Associated General Contractors of America. Steel mill products are up 23.4% over the same stretch. So it’s not just fuel that’s climbing.

How Much Does A Machine’s Fuel Cost To Operate?

Many buyers set their budget around the purchase price and stretch it as far as it will go. That leaves little room for what comes after the sale. With diesel at $6.34 a gallon and fuel making up at least a third of operating costs, according to United Rentals, a machine that looked affordable on paper can quickly become expensive to run. Buyers who plan only for the price tag often find out too late that the fuel bill is what pushes them over budget. 

How Are Contractors Reacting?

They are changing their work. An Equipment World poll of 119 contractors, dealers, and manufacturers found that 81.5% had changed at least one part of their business strategy. About 40% raised bid prices or hourly rates, and 31.1% added fuel surcharges to contracts. (Source: Equipment World poll, as reported by the Daily Caller News Foundation)

The buying habits are changing too. “Fuel is a line item that people haggle over before they sign anything.

How Does This Change The Math On Buying Used Equipment?

Begin with an example. Let’s say a machine uses 10 gallons an hour and runs 1,500 hours a year. At $6.28 a gallon, that is about $63 an hour and $94,000 a year in fuel. A better-matched or better-maintained machine that saves just one gallon an hour saves about $9,400 a year. These are illustrative figures, but the logic is valid for any jobsite.

Some things to look for before you buy:

Right size of the machine. A machine that is larger than the job burns extra fuel on every cycle.

Inspect the fuel system and engine. Old injectors, blocked filters, and tired turbos silently waste diesel.

Check the hydraulic health. An engine with weak pumps or leaking circuits has to work harder to get the same output.

Ask about downtime. Idle hours appear in the service history before they show up in the fuel bill.

Have a third-party inspection. A good report shows the condition problems that drive running costs, not just whether the machine starts.

Why Is It Harder To Find Good Used Machines Today?

There are more buyers looking at used machines, and fewer machines are coming up. Used heavy construction equipment inventory is down 10.45% year over year, according to Sandhills Global’s August 2026 report, with wheel loaders down almost 12%. A clean, well-maintained machine with documented service records does not stay around long.

Waiting for diesel to settle is a risky move too. Prices could ease, but nobody can promise it, and good inventory does not wait. 

Ready to compare running costs before you buy? 

Take a look at MY-Equipment’s used heavy equipment inventory, and ask us for the full service history on any machine you like. We can also arrange inspection and shipping, so you know exactly what you are buying before it leaves the yard. 

FAQs

What percent of the equipment operating cost is diesel?

At least one-third, and it can go higher when prices spike, United Rentals says.

Does a used machine use more fuel than a new one?

Not automatically. The age of the machine is less important than its condition, maintenance, and size. A neglected new machine can be beaten by a well-kept old machine.

Should I wait for diesel prices to drop before buying?

No one can predict fuel prices, and good used machines are getting harder to find. If you find the right machine at a fair price, it is usually better to buy it than to wait.

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