While I’ve read some speculation on the source of the unusual title of the song, it has nothing to do with Duane Allman. It has been theorized that the title represents Allman’s infamous “eat a peach” phrase that inspired a postmortem album title and the cause of his death – a collision with a truck – presumably diesel fueled.
The term, although rather obscure, is used to describe the bouquet of certain wines. Unfortunately, I could not find a description of what a peaches and diesel fragrance represents. I can only imagine, while I may be wrong, that it is possibly a fruity bouquet that lingers heavily – much like diesel fuel hangs in the air long after it is spilled. What do I know about wine anyway?
Whatever it represents, “Peaches and Diesel” was the final cut on the “Slowhand” album. Enjoy.