Diesel Drives Pump Price Pressure

Diesel prices are surging far faster than crude, creating another layer of cost pressure for shippers. Since late February, Brent crude has risen about 26%, while ULSD has climbed more than 70%. U.S. retail diesel is now near post-war highs, reflecting an unusually wide gap between crude and refined-product pricing.

Several forces are tightening diesel supply at once. Russian refinery disruptions have reduced exports, Middle East refinery damage has constrained additional capacity, U.S. refining capacity has declined, and global refinery output remains below year-ago levels. At the same time, U.S. refiners are already running near maximum utilization, leaving limited room to quickly increase production. Distillate inventories also remain well below seasonal norms.

For shippers, that combination can translate into higher fuel surcharges and greater transportation-cost volatility even when crude prices stabilize. TLC is closely tracking diesel markets, refinery conditions, and fuel-related rate pressure across the network. Connect with TLC to review how changing fuel economics could affect your lanes, budgets, and transportation strategy.