U.S. Diesel Prices Hit Record Highs, California Average Exceeds $8.40 per Gallon

According to The Kobeissi Letter (@KobeissiLetter), U.S. diesel prices have hit another record high, with a national average price of $6.45 per gallon, up 40 cents from last week and over $1 higher than last month, marking a cumulative increase of 84% since January. California’s diesel average is even higher at $8.40 per gallon, setting a historic record for the highest average price in the United States. Meanwhile, market expectations for an October rate hike have also risen to new heights. Analysts point out that the ExxonMobil refinery in Illinois has not yet returned to full production following a power outage on September 13, further exacerbating supply pressures. Soaring diesel prices have been passed down to transportation, food, and various commodity costs, significantly increasing operating pressures for independent truck drivers.