U.S. refineries ran at 97% utilization in the week ending Sept. 11, and distillate inventories stood at 15.8 million barrels, or 13% below the five-year seasonal average, according to the U.S. Energy Information Administration. The figures accompany an EIA analysis published Sept. 18 of what drives diesel prices.

Retail diesel averaged $6.29 per gallon on Sept. 14. The agency said that is the highest price on record in nominal terms since it began publishing the series in 1994, and the highest since 2022 after adjusting for inflation.

EIA attributes the increase to crude oil prices, retail margins, distribution costs, taxes and crack spreads, the indicator it uses for refining margins. Tight global distillate supplies have widened the diesel crack spread. Global supplies are constrained by reduced refining activity in Russia, China and the Middle East, which has raised the cost of importing diesel and increased demand for U.S. exports.

Domestic output has been high. U.S. distillate production between January and August averaged 5.1 million barrels per day, the most since 2019. Distillate net exports have remained near or above the previous five-year high since February, and inventories have stayed relatively flat this year through the summer months, when they typically build.

The chart shows the components of the weekly U.S. average retail diesel price from January 2021 through Sept. 14, 2026. In its September Short-Term Energy Outlook, EIA assumes global distillate production will remain below last year's levels in coming months, keeping net exports high, inventories low and prices elevated.

Source: U.S. Energy Information Administration - https://www.eia.gov/todayinenergy/detail.php?id=68164