Diesel Price Crisis Spirals Out of Control as Trump Administration's Plans Falter
The diesel price crisis has been ongoing for months, with no clear end in sight. Despite the Trump administration's efforts to lower prices, there is no quick fix.
National diesel prices hit a new record of $6.51 on September 21, according to AAA. The conflict between the US and Iran has disrupted oil flows through the Strait of Hormuz, with vessels traveling under military protection during limited transit windows or with their tracking systems turned off.
The administration has tried various measures, including releasing oil from the Strategic Petroleum Reserve, waiving the Jones Act to allow foreign vessels to carry oil and refined fuels between US ports, and negotiating access to Venezuelan oil. However, these efforts have had little effect on prices.
U.S. refineries are running near full capacity, leaving little room to quickly increase diesel production. The last major refinery built in the US was in 1977, with most new capacity coming from expanding existing plants rather than building new ones.