Key facts
- The average retail price for diesel in the US has reached $5.69 per gallon.
- This price is close to the April peak, the highest since mid-2022.
- Escalating US-Iran conflict is disrupting shipping through the Strait of Hormuz.
- Ukrainian attacks on Russian refineries are reducing global fuel supply.
- President Trump urged US refining executives to increase diesel and gasoline production.
U.S. diesel prices are nearing their April peak, reaching $5.69 per gallon, as a confluence of geopolitical events and supply constraints tightens the global market. The industrial fuel's price surge is attributed to escalating US-Iran tensions that are disrupting shipping through the Strait of Hormuz, alongside Ukrainian attacks on Russian refineries which are limiting exports from a major global supplier.
These disruptions are occurring against a backdrop of already limited spare refining capacity. President Trump has met with top US refining executives, urging them to boost diesel and gasoline production ahead of the November midterm elections, as gasoline prices also creep above $4 per gallon.
The impact is being felt in commodity markets, with the NYMEX one-month heating-oil/crude spread breaching $108 per barrel. Analysts note that global refinery runs have been significantly below seasonal norms, with China being one of the few countries possessing sufficient spare capacity to potentially alleviate the strain, though Beijing shows little incentive to do so.