U.S. diesel prices surge as refinery damage limits fuel supplies worldwide
U.S. diesel prices hit $6.53 per gallon, with California reaching $8.44, as Middle-East refinery attacks curb fuel output and tighten global supplies.
By the end of September, U.S. diesel averaged $6.53 per gallon, with California prices spiking to $8.44. Ongoing missile and drone attacks on major Middle-East refineries have limited their capacity, causing refined fuels to represent only a small fraction of total oil cargoes moving through the Hormuz Strait. Although crude oil shipments have increased, they remain below the levels seen before the conflict, and most of the oil is destined for Asian buyers.
Nations such as China, Japan and South Korea are keeping a sizable share of domestically produced fuel, further restricting global diesel availability. To mitigate rising costs, the U.S. administration temporarily exempted colored diesel from the federal road tax, a fuel commonly used by farmers. Analysts expect the market to stay tight until at least 2027, when full refinery repairs and replacement of lost fuel volumes may finally restore normal supply levels.
Why it matters
Higher diesel costs affect transportation, food prices and everyday expenses for Americans and global consumers.
How this story developed
- Sep 14 US claims Hormuz traffic improving as oil prices surge amid regional attacks
- Sep 21 Fire on the tanker was extinguished after the projectile strike.
- Sep 23 A cargo ship was struck by an unknown projectile, igniting a fire and forcing crew evacuation.
- Sep 24 Saudi Arabia, the UAE and other Gulf producers have rerouted oil through spare pipeline capacity and a U.S.-protected corridor, keeping global supply steady despite higher prices.
- Oct 3 A second tanker was hit east of Oman, adding to the earlier incident in the strait.
- Oct 5 The G7 announced a release of diesel and crude from emergency reserves.
- Oct 5 A U.S. naval blockade has caused a backlog of hundreds of trucks at the Gürbulak crossing, with waits up to five days.
- Oct 5 President Trump said Ukraine’s strikes on Russian refineries and energy actions in Democratic-led states are driving up fuel costs.
- Oct 6 Trump shifted focus from the Iran conflict to Ukraine attacks and Democratic‑state refinery closures as the explanation for higher gas prices.
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