Overview
- AAA reported that national diesel averages reached about $6.05 per gallon on Friday, jumping from roughly $5.32 one month earlier and $3.70 a year ago.
- Analysts say the price spike has been driven by attacks that disrupted flows through the Strait of Hormuz, Houthi and other strikes on refining infrastructure, and Russia’s diesel export ban that began in July.
- Major U.S. and international refiners are operating near 100% capacity while distillate inventories sit at multiyear lows, so added crude alone cannot quickly raise diesel output.
- Businesses have started applying temporary fuel surcharges and farmers and shippers report rising operating costs, which experts say will push up food and shipping prices in the months ahead.
- The White House has released oil from the Strategic Petroleum Reserve and met with refiners to seek relief, but officials warn repairing damaged refineries or expanding capacity will take time and prices may remain elevated.