Daijiworld Media Network - California
California, Mar 25: On March 25 in Los Angeles, diesel prices in the US state of California surged to an all-time high, according to data released by the American Automobile Association.
The average diesel price in California climbed to $7.018 per gallon on Tuesday, marking the highest level ever recorded by AAA. In contrast, the nationwide average stands significantly lower at around $5.345 per gallon.
Reports attribute the sharp rise to a combination of reduced oil refining capacity and disruptions in global energy supply chains linked to the ongoing Iran conflict. Since October 2025, California has lost two refineries, cutting approximately 20 percent of its refining capacity and tightening fuel availability.
The situation has been further aggravated by supply bottlenecks in the Middle East, particularly due to the closure of the Strait of Hormuz, a critical route for global oil shipments. Even if reopened, experts note that delays in refining and distribution would prevent any immediate drop in prices.
The spike in diesel costs is already impacting transportation expenses, raising concerns about increased prices for essential goods such as food, construction materials, and retail products that rely heavily on diesel-powered logistics.
Agricultural sectors are among the hardest hit. Andrew Genasci, executive director of the San Joaquin Farm Bureau, described the situation as highly stressful, noting that both incoming supplies and outgoing farm products have become significantly more expensive.
According to AAA, the current price surge surpasses previous peaks, including those recorded during the early months of the Russia-Ukraine War, highlighting the severity of the ongoing energy disruption.
With limited refining capacity and continued geopolitical uncertainty, fuel prices in California are expected to remain volatile in the near term.