Decades Of Refinery Mismanagement Are Behind $6 Per Gallon Diesel

The people who gave us $6 per gallon diesel now want to be elected because diesel is punishingly expensive.

Luis Gonzalez | October 4, 2026

So here we are, with diesel at $6 a gallon.

Listening to the political conversation, you could easily come away thinking this all started when Iran went to war. In fact, it didn’t. Iran supplied the shock, but we had already built the vulnerability, which is a key distinction.

Yes, the war in the Middle East has disrupted oil flows and tightened global supplies. The Energy Information Administration says that tight global distillate supplies and elevated crude prices are pushing diesel prices higher. U.S. distillate inventories have fallen below their five-year range, while the loss of significant refining and petroleum-product supplies worldwide has tightened the market.

However, while that explains why diesel prices are so high right now, it doesn’t explain how we became so vulnerable to price shocks.

The reality is that America still produces enormous quantities of crude oil. The trouble is that crude oil is not diesel. Before it reaches the tank of the truck delivering your groceries, somebody has to transport it, refine it, and distribute it—and that brings us to the question nobody seems especially interested in asking:

What happened to the refineries?

The newest major U.S. refinery came online in 1977.

There is a technical footnote here. A 45,000-barrel-per-day refinery in Galveston began operating in 2022. Forty-five thousand barrels a day. In the world of American refining, that is practically a microbrewery.

The newest refinery with significant downstream capacity, then, is Marathon’s Garyville, Louisiana, refinery, which began operating in 1977. It has since been expanded to roughly 617,000 barrels per day.

That is one heck of a long stretch between major new refineries.

For decades, we made the fossil-fuel business increasingly difficult, expensive, and politically uncertain. Different presidents pursued........

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