Overview
- The American Automobile Association reported on Tuesday that U.S. diesel averaged $6.2694 per gallon, the highest pump price on record.
- Analysts link the surge to supply disruptions including a temporary Saudi East–West pipeline shutdown, Yemeni rebel attacks that have hit Red Sea shipping routes, and strikes targeting Russian refineries, which pushed Brent toward $107–$110 per barrel.
- In Italy retail diesel has climbed above €2.30 per litre on highways and a full tank cost about €5 more than two weeks earlier, prompting the government to consider a short extension of a temporary diesel excise cut that was due to expire on September 17.
- Refined-product shortages are tightening markets faster than crude because refinery capacity and regional distribution limit how quickly diesel can be moved and produced, and some market participants fear export restrictions could further constrict supply.
- Rising pump prices are creating immediate pain for consumers and political pressure on leaders in the United States and Italy, with Italian fiscal data due on September 22 likely to shape any further policy response.