California Diesel Reaches $7/Gallon as Global Refineries Struggle
TL;DR
Diesel prices in California surged back toward $7 per gallon as wars in Europe and the Middle East disrupt refineries and Strait of Hormuz flows, with CA prices up about 30 cents from a month ago and $1.89 higher than a year ago. Global refinery margins have jumped to roughly $100 per barrel, and about 8% of refining capacity is offline, fueling a broader inflationary squeeze on transportation, farming, and groceries. California remains pricier due to costly imports, a specialized diesel formulation, and state taxes/regulations, and analysts say relief hinges on damaged refineries coming back online and more Middle East exports resuming.
- Diesel in California rises to $7 a gallon as wars in Europe and Middle East strain supply CNBC
- Red lights are flashing in energy markets CNN
- Why the Real Oil Squeeze Is Happening in Refineries WSJ
- US diesel crack surpasses $100 a barrel for the first time on supply disruptions Reuters
- Diesel Buyers Compete for Shrinking Supply Pool WSJ
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