U.S. Gasoline and Diesel Prices Rise Amid Global Refining Disruptions
Gasoline hit $4.44 per gallon and diesel reached a record $6.40 per gallon as conflicts in Iran and Ukraine tighten global refining capacity, prompting analysts to forecast further increases.
U.S. gasoline prices rose to a national average of $4.44 a gallon on Thursday, while diesel climbed to a record $6.40 a gallon, according to the American Automobile Association. Analysts attribute the surge to reduced refining capacity caused by ongoing conflicts in the Middle East and Eastern Europe.
"Consumers should plan on higher prices for longer," said Patrick De Haan, a petroleum analyst at GasBuddy. He expects gasoline could reach $4.50 a gallon later in the week and diesel may rise to $6.60 a gallon by the weekend.
The price spikes follow disruptions to oil supply chains, including a power outage at an ExxonMobil refinery near Chicago, recent Houthi attacks on Saudi Arabia’s East-West pipeline, and Ukrainian drone strikes on Russian refining facilities. Those events have cut millions of barrels per day from global markets, tightening supply and pushing Brent crude to around $103 a barrel.
Tom Kloza, chief energy adviser for Gulf Oil, noted that while some drivers may reduce gasoline use, diesel consumption remains essential for trucking, rail, construction and heating oil. He warned that higher diesel costs could raise utility bills and heating expenses, especially for households that rely on diesel-derived heating oil.
Regional price differences persist, with Illinois averaging $4.78 a gallon and California exceeding $6 a gallon for gasoline. Kloza said the variation reflects the distribution of refining capacity across states.