US Diesel Prices Hit Historic Peak of Rs. 591/Litre As Iran War Strangles Fuel Supply

The worsening US-Israel war on Iran has pushed diesel prices in the United States to nearly Rs. 600/litre in Pakistani Rupee terms.

American city San Francisco has become the first city in US history where average diesel prices hit $8 per gallon. This is equivalent to around Rs. 2,240 per gallon or ~Rs. 591/litre at a sell rate of Rs. 280/$.

California’s statewide average has surged to $7.63 per gallon (~Rs. 566/litre). Across the country, at least seven US states are already reporting diesel prices above $6 per gallon (~Rs. 445/litre).

Why Diesel Prices Are Exploding

Diesel fuel is more prone to global supply problems:

• Diesel competes with jet fuel and heating oil during refining.
• Global distillate inventories were already low before the conflict.
• West Coast refinery outages and limited refining capacity have intensified shortages.
• Heavy industries like trucking, agriculture, shipping, and construction cannot easily reduce diesel consumption even when prices soar.

Because diesel powers supply chains, high prices quickly translate into bigger transportation costs, expensive food, and deteriorating inflation.

According to American Automobile Association (AAA) data:

• US national average gasoline price: about $4.10 per gallon
• California gasoline average: roughly $5.92 per gallon

The widening price gap shows how the US is suffering from Donald Trump’s war-imposed energy shock.

Further US escalation against Iran could send fuel prices even higher early next week.