California diesel prices hit record high amid supply crunch

Business & Finance
25 Mar 2026 • 2:14 PM MYT
The Sun Daily
The Sun Daily

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California’s diesel prices reach a record US$7.018 per gallon, driven by reduced refining capacity and global energy disruptions, impacting transportation costs.

LOS ANGELES: Diesel prices in California have surged to a record high. The American Automobile Association reported an average price of US$7.018 per gallon.

This figure marks the highest level recorded in the AAA’s database. The current national average price for diesel is about US$5.345 per gallon.

US media reports link the price spike to reduced oil-refining capacity and global energy shipment disruptions. California has lost two refineries since October 2025, cutting roughly 20% of its state capacity.

The soaring diesel costs are driving up transportation expenses. This increase threatens to ripple into higher prices for food, building materials, and retail goods shipped by truck.