Overview
- Retail diesel reached a nominal record of about $6.50 per gallon, with AAA reporting a national average near $6.505 on Monday, Sept. 21, 2026.
- U.S. distillate stocks have plunged to multidecade lows, with the EIA reporting about 107.9 million barrels by Sept. 11 and forecasts that inventories will remain below the five‑year low into much of 2027.
- Industry and storage‑market signals show little spare diesel to store because tanks are being released rather than renewed, a pattern market brokers say suggests tightness will persist into early 2027.
- The supply squeeze reflects overlapping shocks: attacks and damage to Middle East and Russian refineries, reduced tanker flows through key chokepoints, and Russian export restrictions that cut available diesel.
- High diesel is forcing trucking firms to raise rates, shrink fleets, or exit operations, which is already raising freight costs that can feed through to farmers, retailers, and broader inflation measures.