Diesel Prices Soar to Record High Amid Global Oil Supply Disruptions
California's diesel prices have reached an all-time high of $8.14 per gallon, surpassing the national average of $6.20 per gallon. The spike is attributed to a global oil supply shock caused by the shutdown of Saudi Arabia's East-West pipeline and ongoing disruptions in the Strait of Hormuz.
The 4% reduction in global oil supply has led to a surge in Brent crude prices, closing at $109.51 per barrel on September 9. West Texas Intermediate has also increased significantly, reaching $103.50 per barrel, up 22.3% from July 2.
California's diesel prices are particularly affected due to its unique refining requirements and high fuel taxes. The state's pump prices often trade at a premium, making it one of the most expensive places for diesel in the country.