Refining Capacity Crisis Sparks Fuel Price Lockdown

Oil giants ExxonMobil Holdings Corp. and Chevron Corp. have warned that high fuel prices are likely to persist even if crude oil prices drop in coming months. The wars in Russia and Middle East have severely impacted global refining capacity, leaving many refineries offline and causing a disconnect between fuel and oil prices.

Typically, gasoline, diesel, and jet fuel prices rise and fall with crude oil prices. However, the current shortage of refineries has disrupted this link, keeping fuel prices stubbornly high despite declining oil prices.

This development is accelerating inflation, which is a major concern for policymakers and consumers alike.