NewsHK
A confluence of tight fuel supplies, reduced refining capacity, constrained pipeline infrastructure, and elevated state taxes has pushed California diesel prices to a statewide average above $8 per gallon, with one San Diego station posting $9.99 per gallon.
The move is drawing attention well beyond the pump, touching the cost structures of trucking, construction, and moving companies across the state. The supply picture is the starting point.
California's refining footprint has contracted over recent years, and the state's limited pipeline connections leave it with few outlets when local production falls short.
Global energy market disruptions, attributed in the source to ongoing conflicts, have added an external pressure that the state's isolated fuel system is poorly positioned to absorb.
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