U.S. Diesel Prices Hit Record High, Surging to Rp 112,000 per Gallon

JAKARTA, KOMPAS.com - The average retail price of diesel fuel in the United States reached 6.29 U.S. dollars per gallon, equivalent to approximately Rp 112,038 per gallon (assuming an exchange rate of Rp 17,812 per U.S. dollar) on September 14, 2026.

For reference, one gallon equals 3.78 liters.

According to an analysis by the U.S. Energy Information Administration (EIA) released Friday (September 18, 2026), this diesel price is the highest nominal figure since the EIA began publishing diesel price data series in 1994.

SHUTTERSTOCK Fuel illustration.

Adjusted for inflation, the diesel price also represents the highest level since 2022.

The EIA explained that diesel prices are influenced by several components, including crude oil prices, retail margins, distribution costs, taxes, and the price differential known as the crack spread, which serves as an indicator of refining margins converting crude oil into products such as gasoline and diesel.

"The price of distillate fuel oil, commonly sold as diesel, is affected by crude oil prices, retail margins, distribution costs, taxes, and the price differential (crack spread)," the EIA wrote in its analysis.

The agency noted that recent rises in diesel prices have occurred amid tightening global distillate fuel supplies and persistently high crude oil prices.

This situation is reflected in the elevated diesel crack spread. The EIA clarified that crack spread measures refinery profitability in processing crude oil into petroleum products like gasoline and diesel.

For diesel, the EIA calculates the crack spread by subtracting the crude oil spot price per gallon from the wholesale diesel price per gallon.

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The higher the crack spread, the greater the margin between refined product prices and their raw materials.

When refined product supplies are tight, rising crack spreads can boost refining margins and subsequently push retail diesel prices higher.

Global Diesel Supply Tightens

One of the key factors driving diesel prices in the U.S. is the state of the global distillate fuel supply.

The EIA observed that global supplies of distillate fuels, including diesel, have tightened due to decreased refining activity in Russia, China, and the Middle East.

Declining distillate production in these countries has caused refined petroleum product prices to increase on the international market, which in turn has raised the cost of diesel imports into the U.S.

At the same time, rising international prices have boosted demand for U.S. diesel exports.

Thus, global market dynamics not only impact the diesel prices paid by American consumers but also influence trade flows of refined petroleum products.

U.S. Diesel Production Hits Highest Level Since 2019

Despite tight global supplies, U.S. distillate fuel production remains at a high level.

The EIA recorded that average U.S. distillate production from January to August 2026 stood at 5.1 million barrels per day (bpd), the highest since 2019.

Refinery utilization in the U.S. also remains elevated. For the week ending September 11, 2026, U.S. refinery utilization reached 97 percent, nearing maximum capacity.

PIXABAY/ENGIN AKYURT Fuel illustration.

However, this strong domestic production has not yet eased U.S. diesel supply.

The EIA explained that import and export dynamics have resulted in net distillate exports from the U.S. hovering near or above the highest levels seen in the past five years since February 2026. This net export increase was especially notable in March and April 2026.

The export surge subsequently impacted distillate inventories, with the EIA noting declines during that period.

Typically, distillate inventories rise during summer, but this year they remained relatively flat. For the week ending September 11, 2026, U.S. distillate stocks were 15.8 million barrels, 13 percent below the five-year seasonal average for 2021-2025.

Low inventories represent a key factor driving up refining margins.

High Diesel Prices Affect Transportation Costs

The rise in diesel prices affects not only diesel vehicle consumers.

The EIA noted that elevated diesel prices increase transportation costs for goods by both road and rail.

Diesel also sees considerable seasonal use, especially in agriculture and residential heating in the U.S. Northeast.

Therefore, diesel price movements relate not only to energy costs but also to the distribution expenses for various goods.

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The EIA breaks down the U.S. retail diesel price into several components: crude oil price, refining margin, and a combined margin covering retail, distribution, and taxes.

To calculate refining margin, the EIA uses the difference between New York Harbor wholesale diesel prices and Brent crude spot prices.

The retail, distribution, and tax component is derived from the difference between the U.S. average retail diesel price and New York Harbor wholesale diesel prices.

Global Production Expected to Remain Under Pressure

In its September Short-Term Energy Outlook (STEO), the EIA forecasts that global distillate fuel production will stay below previous year levels for the coming months.

This contributes to continued high U.S. net exports, low inventories, and sustained high prices.

In other words, global supply developments are closely watched to gauge U.S. diesel price trends in the near term.

Domestically, U.S. production remains strong. Average distillate output from January to August 2026 was 5.1 million bpd, the highest since 2019, while refinery utilization hit 97 percent for the week ending September 11, 2026.

Nevertheless, inventory data show available supplies remain below the five-year seasonal pattern.

On September 14, 2026, the average U.S. retail diesel price was 6.29 U.S. dollars per gallon, equivalent to about Rp 112,038 per gallon at an exchange rate of Rp 17,812 per U.S. dollar.

The EIA recorded this as the highest nominal price since diesel price data began in 1994. When adjusted for inflation, it represents the highest level since 2022.