U.S. Diesel Hits All-Time Record of $5.85 per Gallon

U.S. retail diesel reached an all-time high of $5.85 per gallon on September 4, up from $3.71 a year earlier, according to figures from the American Automobile Association (AAA) reported by The Guardian. The New York gasoline refining margin has averaged $1 per gallon more than in 2025 since May, according to the U.S. Energy Information Administration (EIA).

The record comes amid tighter global refining supply and more expensive crude. According to The Guardian, renewed hostilities between the United States and Iran pushed Brent crude to near $97 per barrel on Thursday, September 3, and Russia last week extended its diesel export ban. The EIA attributes the elevated margins to refinery disruptions in Russia, China, and the Middle East, which reduced supplies of gasoline and, to a greater degree, distillates.

In the week ending August 28, U.S. distillate stocks stood 14% below their five-year average, compared with 6% for gasoline, according to the EIA. The New York distillate margin has averaged 74 cents per gallon more than the gasoline margin since March, and Russia, which supplies roughly 10% of the world's diesel, continues to restrict its exports, The Guardian notes. The EIA reports that the tighter supply has raised the cost of imported gasoline and increased demand for U.S. exports; for Mexico and other Latin American markets that purchase that product, the elevated Gulf margin is reflected in the price of imported diesel.

The key metric to watch is the EIA's weekly inventory reading, which will show whether distillate stocks remain under pressure and whether Russia maintains its diesel export ban. The next AAA retail price figure will indicate whether the September 4 record marks a ceiling or whether the climb continues.

This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.