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California diesel stations hit $9.99 cap as supply strains push prices higher

Some California pumps display a $9.99 diesel price, but the figure often reflects a stockout rather than the actual cost to drivers.

Diesel prices in California have surged, with the national average at $6.00 per gallon and the state average climbing to $7.91, a $2.75 increase over the past year. At several locations, pump signs show the maximum allowable $9.99, but GasBuddy’s petroleum analyst Patrick De Haan says this often indicates the station has exhausted its diesel inventory rather than the price being charged. Only one station he checked appeared to be selling fuel at that rate.

The upward pressure stems from seasonal agricultural demand, the state’s 13% diesel tax—the highest in the nation—and geopolitical tensions, including the wars in Iran and between Russia and Ukraine, which have reduced global supply. De Haan predicts prices could rise to $8.25 or higher before any relief appears, and advises drivers to compare prices across stations, as differences of $2-$2.50 per gallon are common.

Why it matters

Rising diesel costs affect transportation, agriculture and consumer prices across California.

In this story

diesel priceCaliforniasupply shortageglobal conflictfuel taxseasonal demandprice capPatrick De Haan
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