Los Angeles: Diesel prices in California have soared to an all-time high, according to the latest data from the American Automobile Association (AAA).

The average diesel price in California reached $7.018 per gallon on Tuesday, marking the highest level ever recorded in AAA’s database. By contrast, the US national average diesel price currently stands at approximately $5.345 per gallon, Xinhua reported.

Fuel experts cite refinery losses and global supply disruptions

US media reports attribute the steep rise in diesel costs to a combination of reduced oil-refining capacity and disruptions in global energy shipments amid the ongoing war in Iran. Since October 2025, California has lost two major refineries, eliminating nearly 20 per cent of the state’s refining capacity, further constraining fuel supply.

The surge in diesel prices is driving up transportation costs, with potential ripple effects on food, building materials, and retail goods transported by diesel-powered trucks.

“There are a lot of sleepless nights. There's a lot of stress, and people just trying to do the best they can,” said Andrew Genasci, executive director of the San Joaquin Farm Bureau. “Anything that's coming onto the farm or leaving the farm is now more expensive.”

Record diesel prices outpace previous peaks

According to AAA, the new record surpasses all previous highs, including levels observed during the first months of Russia’s war in Ukraine in 2022. Analysts warn that global oil shipment disruptions, particularly due to the closure of the Strait of Hormuz in the Middle East, continue to restrict supply. Even if the strait reopens, oil will take time to move through refineries, meaning prices are unlikely to fall immediately.

With limited refinery capacity and ongoing geopolitical tensions, California diesel prices in 2026 are expected to remain elevated, posing challenges for transportation, logistics, and agricultural sectors across the state.

IANS