U.S. Refining Margin Averages $1 per Gallon More Than in 2025

New York gasoline refining margins have averaged nearly $1 per gallon more than in 2025 since May, according to data from the U.S. Energy Information Administration (EIA) published on September 4. The EIA attributes this level to tighter global gasoline supply driven by refinery outages in Russia, China, and the Middle East.

The pressure on margins coincides with an escalation between the U.S. and Iran that pushed Brent crude to near $97 per barrel on Thursday, its highest level in about six weeks, and with Russia extending its diesel export ban, as reported by The Guardian. Russia supplies roughly 10% of global diesel, and its refineries came under attack in August, according to the same outlet. U.S. retail diesel reached a record high of $5.85 per gallon on Friday, up from $3.71 a year earlier, according to the American Automobile Association (AAA). For Mexico, which imports gasoline and diesel from the Gulf basin, higher margins in that region raise the cost of the fuels it purchases.

The EIA notes that since March the diesel margin in New York has averaged 74 cents per gallon above the gasoline margin, prompting U.S. refineries to shift production toward distillates and aviation fuel. In the week ending August 28, distillate inventories were 14% below the five-year average, compared with 6% for gasoline, and U.S. gasoline imports have been 32% below their 2021-2025 average since March. At retail, regular gasoline averaged $4.07 per gallon nationally, with the Gulf Coast as the cheapest region at $3.62. In the United Kingdom, diesel averaged 183.5 pence per liter on Thursday, an increase farmers are describing as astronomical.

The next indicator to watch is the EIA's weekly inventory report and vessel transit through the Strait of Hormuz. Both factors will determine whether refining margins hold at these levels and shape the cost of the fuels Mexico sources from the Gulf.

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