West Coast Diesel Hits Record Highs Amid Supply Constraints
Diesel reached a record $6.45 per gallon nationally, with West Coast prices topping $8 due to regional supply issues.
The national average price for diesel reached a record high of $6.45 per gallon on Friday. This surge occurred while crude oil prices stayed above $100 per barrel. Forty-four US states now report diesel prices at all-time highs. New Jersey and Maine joined this group on Thursday.
GasBuddy analysts project the national average could exceed the 2022 inflation-adjusted peak of $6.58. AAA data shows gasoline prices at $4.46 per gallon. This figure is $0.10 below the peak reached in May during US-Iran tensions. The current trend reflects persistent pressure on refined fuel markets.
Regional Price Disparities Widen
West Coast diesel prices have exceeded $8 per gallon. High taxes and limited refining capacity drive these costs. Dependence on imports further constrains local supply. East Coast prices remain closer to the national average.
Midwest diesel prices approach $7 per gallon. Harvest demand and refinery outages contribute to this rise. The US Energy Information Administration tracks these regional splits. Data confirms significant divergence from national averages.
Government Response to Fuel Costs
The Trump administration issued a 90-day waiver for truck drivers. This rule allows up to 16 hours of driving within a 24-hour span. Previous limits capped driving at 14 hours. Transportation Secretary Sean Duffy cited supply and cost concerns.
Strategists speculate a US diesel export ban may occur. This move could precede midterm elections if prices remain high. The waiver aims to ease hours of service restrictions. Officials point to the need for logistical flexibility.
Freight Sector Faces Margin Pressure
J.B. Hunt expects quarterly earnings to drop 5% to 10%. CFO Brad Delco warned investors about rising diesel costs. The company noted that surcharges struggle to keep pace with pump prices. Bank of America analysts highlighted seven consecutive weeks of price increases.
Brent crude crossed $100 per barrel for the first time in two months. This move followed ongoing conflicts in the Middle East. Crack spreads hit new highs due to refining constraints. GN auto markets/energy data tracks these gasoline and diesel price shifts. The sustained high costs impact logistics and consumer budgets.
