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U.S. Diesel Tops Record $5.85 a Gallon

Fighting in the Strait of Hormuz, damaged refineries and Russian export curbs have tightened refined-fuel flows and raised the risk of broader price increases.

Overview

  • U.S. diesel hit a national average of $5.85 a gallon on Friday, according to AAA, while regular gasoline averaged about $4.15 per gallon.
  • The price spike reflects renewed fighting around the Strait of Hormuz, missile and drone damage to refineries in the Middle East and Russia, and Moscow’s restrictions on refined-fuel exports that have cut product flows.
  • The Energy Information Administration reports distillate stocks at historic lows for this time of year, and U.S. refiners have boosted runs and are earning unusually wide crack spreads, limiting near-term supply relief.
  • Businesses that rely on diesel are already passing costs to customers through fuel surcharges and higher shipping fees, and farmers warn rising fuel bills will raise harvest and food costs.
  • The current shock is the latest in a string of war-driven fuel disruptions — prices are well above prewar levels and meaningful relief likely requires restoring Persian Gulf tanker routes or Russian product exports, so markets will watch inventories, refinery outages and fighting closely.