Overview
- The national average for diesel reached new records Friday at about $6.40–$6.45 per gallon, and some states show much higher prices with California diesel averaging over $8 a gallon.
- Retail gasoline has jumped regionally, with stations in Milwaukee reporting nearly $5 a gallon and Chicago averages topping $5, driven by constrained supplies and local refinery outages.
- A drone strike on Saudi Arabia’s East–West pipeline and threats to shipping through the Strait of Hormuz and Red Sea have reduced crude shipments, and analysts say pipeline repairs could take days to one or two months depending on damage.
- Distillate inventories are below normal and many refineries are running near full capacity, which limits how quickly crude can be turned into diesel or gasoline and means seasonal fuel switches are not easing prices.
- Higher diesel costs are already raising operating expenses for truckers, farmers and food banks and are expected to flow into consumer prices and heating bills this winter, creating political pressure for policy responses such as reserve releases or tax changes.