California pumps are stretching their displays to capture the enormous price of diesel at more than $8 per gallon. As fuel prices reach record highs, many are wondering: Are we headed for $10 a gallon?
Though prices are rising fast, double-digit diesel would still require an enormous shift in the market.
Here’s what you need to know about the current state of fuel.
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Why are Prices Rising So Rapidly?
Although the closure of the Strait of Hormuz is largely to blame for current diesel prices, several other factors also contribute to high prices.
The EIA reports that distillate inventories are well below the five-year average and are likely to remain depressed throughout 2027. Supply losses from trade issues drive this.
Additionally, seasonal influences are also inflating prices, including annual refinery maintenance and winter heating.
When these factors are compounded, they make for dizzying prices at the pump.
What Would it Take to Hit $10 per Gallon?
Though $10 diesel doesn’t seem too far from $8 diesel, it would take a truly exceptional blend of events to push diesel into the double digits, including a combination of any of these events:
- A sustained closure of the Strait of Hormuz.
- A prolonged or emergency closure of refineries due to natural disasters or outages.
- A considerable jump in demand while inventories are already tight.
- An event that exacerbates inflation.
How Can Carriers Cope with Historic Costs?
Carriers should never have to pay the price at the pump. With the England Carrier Services fuel card, you can take dollars off every gallon of fuel, essentially rewinding fuel prices to when they were far more tolerable.
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1. Click here to fill out a fuel form. 2. An England Carrier Services account manager will customize a fuel card to maximize your savings.
3. If you’re a fleet owner, you can personalize the card with custom restrictions for your fleet.
4. You receive your fuel card in the mail.
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As diesel prices continue to climb, many are wondering if they will eventually be insurmountable.
Though $8 a gallon is certainly painful, $10 would take a lot of bad luck. Regardless, it’s imperative to reduce fuel costs by using a fuel card.
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That was my bad, I meant to say “decrease.” See below for the change.
If several of these events are compounded, diesel may rise to $10, making it plausible, but not necessarily probable. In fact, forecasts for 2027 indicate a notable decrease in fuel prices on the horizon, offering hope to carriers weighed down by high prices.