California Diesel Prices Hit All-Time High Amid Ongoing Conflicts
Diesel prices in California have hit an all-time high of $7.81 per gallon on Sunday, according to AAA Gas Prices.
This marks a new record for the state and comes as the U.S. war with Iran causes major refinery disruptions and the price of crude oil soars.
The national average price of diesel also jumped to an all-time high of $5.85 on Friday, driven by constraints on global refining capacity due to wars in Russia and the Persian Gulf.
Refineries in these regions have been damaged, hampering the export of main ingredients for making diesel from crude oil.
Severin Borenstein, an economist at U.C. Berkeley, noted that the Strait of Hormuz closure has disrupted shipments of refined products from large refineries in Saudi Arabia and other parts of the Middle East.