US fuel costs surge as diesel hits record levels amid Middle East supply shocks
Gasoline prices rose to $4.44 per gallon and diesel hit a national average of $6.40, with California reaching $8.35, as supply disruptions in the Middle East and a refinery outage push U.S. fuel costs higher.
U.S. gasoline averaged $4.44 per gallon on Friday, while diesel reached a nationwide average of $6.40, spiking to $8.35 in California. Midwest states experienced the steepest daily increases, with Iowa up 25 cents, Wisconsin 23 cents and Michigan 22 cents per gallon. The price surge is linked to Middle East turmoil that has constrained oil flow through the Hormuz Strait and to recent attacks that damaged Saudi Arabia's East-West pipeline, a key alternative route.
Additional setbacks include the outage of an ExxonMobil refinery in Joliet, Illinois. Energy Secretary Chris Wright says the pipeline could be back in operation within days, but experts like Andrew Lipow predict a repair period of one to two months. The higher diesel cost is expected to ripple through trucking, farming and manufacturing, potentially raising overall goods prices. Policymakers in Washington are considering curbing diesel exports, a move supported by Senate Republican leader John Thune, though economists caution it may not ease domestic prices and could tighten global markets.
Why it matters
Rising fuel costs threaten transportation expenses and consumer prices across the United States.
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