Diesel Shortages and Price Surge at Gas Stations Across the U.S.
According to Newsweek, some gas stations in the U.S. have recently run out of diesel, while national diesel prices continue to rise, drawing attention to the tightness in the diesel supply chain.
Specific cases include a Valero gas station in Lewisville, North Texas, and a gas station in Orlando, Florida, both experiencing diesel shortages, leaving consumers unable to refuel. As of September 11, the national average price for diesel in the U.S. has risen to $6.05 per gallon.
Price comparisons show a significant increase: this price is up from $5.85 per gallon a week ago and nearly doubled from $3.70 per gallon a year ago. Since the conflict began in late February, diesel prices have cumulatively increased by over $2 per gallon.
By state, the five states with the highest prices are California at $7.98 per gallon, Washington at $7.05, Hawaii at $7.00, Oregon at $6.41, and Nevada at $6.38. The five states with the lowest prices are Oklahoma at $5.60, Missouri at $5.65, Louisiana at $5.65, Mississippi at $5.67, and Texas at $5.67, with price differences exceeding $2 per gallon across states.
Multiple factors are driving up prices: ongoing conflicts between the U.S. and Iran continue to disrupt shipping in the Strait of Hormuz, which handles about 20% of global crude oil trade; Brent crude oil prices have risen above $105 per barrel, significantly up from about $70 before the conflict; additionally, Russia has implemented a diesel export ban, and some refinery facilities have been damaged, while China has tightened refined oil export quotas, all contributing to supply-side pressures in this price surge.
However, Patrick De Haan, head of oil analysis at GasBuddy, provided a different assessment of the "national supply shortage," stating that GasBuddy has not observed signs of large-scale shortages in its data or payment system, and that the shortages at individual gas stations are still within normal fluctuation ranges and should not be interpreted as evidence of a national shortage. He also acknowledged that the chain reaction of rising prices is becoming evident, stating, "Every truck transport, every delivery, every package, and every grocery purchase is becoming more expensive."
From a market mechanism perspective, the beneficiaries of this price increase are oil-producing countries and refining companies, whose profit margins expand in a high oil price environment; the pressured parties are the logistics and transportation industries that rely on diesel and end consumers, as rising transportation costs will ultimately be passed on to retail prices. Financially, geopolitical conflicts are driving risk-averse and speculative funds into the crude oil futures market, and the continued rise in Brent crude oil prices is a direct reflection of this re-pricing of risk.
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Geopolitical conflicts causing sharp fluctuations in oil prices are not new: after the outbreak of the Russia-Ukraine conflict in 2022, Brent crude oil briefly surpassed $139 per barrel, and European diesel and heating oil prices surged significantly; the Strait of Hormuz, as a vital passage for about 20% of global crude oil trade, has historically experienced sharp fluctuations in international oil prices due to regional conflicts, including the "tanker war" during the Iran-Iraq War in the 1980s and the 2019 Gulf tanker attacks. The current U.S.-Iran conflict continues this historical pattern of disruption in the Strait's shipping.
In terms of capital and resource flows, Russia has been forced to reduce diesel exports due to export bans and refinery damage, while China has simultaneously tightened refined oil export quotas. This dual supply contraction has necessitated a reallocation of global diesel trade flows, forcing buyers who previously relied on these channels to turn to U.S. inland refineries and other alternative supply sources. This forced shift in procurement paths is directly reflected in the rapid rise of diesel prices in the U.S., explaining why states like California and Washington, which are more dependent on external supplies, have seen particularly pronounced increases.
In industry comparisons, this situation is similar to the 2021 cyberattack on the Colonial Pipeline that led to fuel shortages on the East Coast—both instances involve localized disruptions causing regional supply tightness rather than a national capacity shortage; it also resembles the diesel shortages in Europe following the Russia-Ukraine conflict, as the current U.S. diesel market is experiencing a short-term supply shock due to geopolitical conflicts rather than a structural capacity crisis.
Structurally, this is essentially a forced reconstruction of the supply chain: the blockage of Middle Eastern shipping routes, tightening of Russian exports, and adjustments to China's export quotas have combined to compel a temporary re-routing of global diesel trade. Buyers are turning to alternative supply chains that are geographically further away, with higher transportation and insurance costs; even if geopolitical conflicts ease in the future, this newly formed trade path and cost structure may partially solidify in the medium term and not revert immediately to the previous state after the conflict ends.