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U.S. Diesel Prices Hit Record High

By Markets Desk · 2026-09-20 · 1 min read
A large industrial refinery with tall smokestacks and complex piping structures standing against a clear sky
Illustration: Tradingbird

U.S. retail diesel prices reached an all-time nominal high of $6.29 per gallon in September. Tight global supplies and elevated refining margins are driving the increase.

U.S. retail diesel prices averaged $6.29 per gallon as of September 14. This figure represents the highest nominal price on record since data collection began in 1994. The price is also the highest adjusted for inflation since 2022. According to the EIA · Today in Energy, these levels are driven by tight global supplies and high crude oil costs.

Refining margins, measured by crack spreads, have expanded significantly. The spread is the difference between wholesale diesel prices and crude oil costs. High margins on top of expensive crude fuel the retail price increase. Elevated diesel costs raise freight expenses for goods transported by road and rail. The fuel also serves as a primary heating source in the northeastern United States.

Global Supply Constraints Tighten

Global distillate supplies are constrained by reduced refining activity. Production has dropped in Russia, China, and the Middle East. This reduction forces higher international prices. U.S. import costs rise as a result. Simultaneously, U.S. diesel exports become more competitive in the global market.

U.S. Production and Inventory Levels

U.S. distillate production averaged 5.1 million barrels per day from January through August. This is the highest average since 2019. Refinery utilization reached 97% in the week ending September 11. Net exports have remained near five-year highs since February. U.S. distillate inventories stood at 15.8 million barrels in early September. This level is 13% below the five-year seasonal average.

Inventories have remained flat despite the typical summer build. Low stock levels drive refining margins higher. The EIA Short-Term Energy Outlook projects global production will stay below last year's levels. This outlook suggests sustained high net exports and elevated prices will persist in the coming months.

Based on reporting by EIA · Today in Energy, compiled by the Tradingbird desk.

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