Some Gas Stations 'Out of Diesel' as Prices Surge Past $6
Diesel has crossed $6 a gallon nationally with isolated 'out of diesel' signs appearing at stations. Refinery outages and Strait of Hormuz disruption are driving the squeeze.
Diesel is now trading above $6 a gallon at the national pump, and isolated reports of stations posting out of diesel signs are circulating on social media. Industry data does not yet show a broad shortage, but the price move is real and it is squeezing freight, farmers, and refiners alike.
What actually happened
One image posted on X showed a station in North Texas displaying an “out of diesel” notice. GasBuddy's Patrick De Haan pushed back on shortage narratives, telling drivers to verify claims before panicking.
“Volatility may lead stations to wait a day or three before buying gasoline, but people misinterpret it immediately because we're in very sensitive times,” he said. “This is a time to fact check everything to avoid runaway panic.”
The price move is not subtle
The EIA put the national average at $6.285 a gallon on September 14, compared with $3.739 a gallon in the corresponding week a year earlier, which is an increase of $2.55 per gallon, or 68 percent.
The rise has accelerated over the past two months, with diesel averaging $5.462 a gallon in August, before climbing to $5.967 in the first week of September and $6.285 a week later. All regions across the country surpassed $6/gal, based on EIA's numbers. The nation's cheapest diesel is in the Gulf Coast region at $6.03/gal., and the most expensive is in California at $8.04.
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Why it is happening
Energy prices have risen all across the world and across the country, with diesel being hit harder than gas as it depends heavily on refinery output and global freight markets.
The ongoing war in Iran has effectively put a chokehold on the Strait of Hormuz, a key waterway which normally permits the transit of one fifth of the world's supply of oil. Dramatically diminished traffic through the strait and attacks on transiting vessels from Tehran have fueled fears of supply shortages, making crude oil prices surge. As of Friday, Brent crude, the international standard, was trading at more than $105 a barrel, up from about $70 before the start of the conflict.
Domestic refining is also under stress. Some parts of the country could see sharper increases in gas prices after the ExxonMobil refinery in Joliet, Illinois, suffered a total power outage earlier this week. The facility, which usually processes about 275,000 barrels of crude oil per day, was forced to shut down on Monday.
Washington is watching
The surge in prices has led to discussion in Washington over keeping more U.S.-produced diesel at home. An export ban would be a direct hit to U.S. refiners' margins, though it would ease domestic pump pressure.
The hit to end users is already visible. Diesel surpassed its all-time high in early September, and has continued surging further above the $6-per-gallon mark amid supply constraints caused by the Iran war and other global pressures. The nationwide average reached $6.31 on Wednesday, per AAA data, and certain parts of California are seeing the fuel close in or surpass $10 per gallon, leaving stations at a loss for how to display prices on their three-digit displays.
Options market and stocks to watch
XOM: Exxon owns the Joliet refinery at the center of the Midwest supply squeeze. Watch for flow tied to any restart timeline and to headlines around a potential diesel export ban.
VLO and PSX: Pure-play refiners are the most direct beneficiaries of crack spread widening, but also the most exposed if Washington moves to restrict exports.
MPC: Marathon has heavy distillate exposure. Watch for unusual call activity as diesel cracks blow out.
USO: The crude ETF tracks the underlying WTI move that is feeding the diesel surge. See more coverage on the Unusual Whales news feed.
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