Diesel in California Reaches Highest Price Ever Recorded

Cost of Gallon Reaches Above $7, Surpassing Previous Record From June 2022

Sign showing gas and diesel prices
A sign displays the prices of unleaded gasoline and diesel fuel at a 76 gas station in San Francisco on March 19. (David Paul Morris/Bloomberg)

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The average cost for a gallon of diesel in California rose to the highest level ever as the state deals with limited oil-refining capacity and the war in Iran disrupts global energy shipments. 

A gallon of diesel costs an average of $7.018 a gallon, according to the latest data from the American Automobile Association. That topped the previous record of $7.012 in June 2022, in the first months of Russia’s war in Ukraine.

Diesel futures have surged on the war in Iran, with the Strait of Hormuz effectively closed — cutting off both key trade flows of crude oil en route to refineries as well as shipments of diesel and other fuels produced in the region.

Nationally, diesel pump prices are hovering above $5.30, their highest since November 2022. California has lost two refineries since October 2025, eliminating roughly 20% of its refining capacity.



 

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