Fuel prices remained elevated as military conflicts in energy-producing regions continued through the summer. Higher fuel prices, tariffs, and other market pressures contributed to a broad-based increase in construction costs. Meanwhile, the U.S. industrial real estate market continued to show signs of recovery.
Fuel
Fuel prices remain elevated as military conflicts in Iran and Ukraine, key energy-producing regions, persist. The retail price for a gallon of No. 2 Diesel Ultra Low Sulfur (0-15 ppm) fuel in the Lower Atlantic region rose to $5.33 in early May before dipping to $4.48 in early July after the U.S. and Iran signed a memorandum of understanding to end their conflict and reopen the Strait of Hormuz, a chokepoint for approximately 25% of the world’s oil trade. When the U.S. and Iran resumed military strikes later in July, the price of diesel in the Lower Atlantic region returned to $5.26 per gallon as of July 27, 2026, approximately $1.89 above its post-2007 average price. Currently in Georgia, the average price for regular gasoline is $3.86 per gallon (up 37% this year) and the average price of diesel is $5.28 per gallon (up 46% this year). As explained in the Carroll Daniel Q2 2026 Market Report, elevated fuel costs immediately impact equipment fuel prices and freight rates, then increase the price of petroleum-based products like asphalt, and finally have longer-developing effects on the price of energy-intensive and polymer-based building materials.
SOURCES: U.S. Energy Information Administration; Georgia Department of Transportation Fuel
SOURCE: Georgia Department of Transportation Fuel Price Index