The diesel shock is here. Which US states will be hit the hardest?
The spread between diesel and crude prices in the United States has surpassed $100, driven by the Strait of Hormuz closure and declines in global refinery capacities. Diesel is predominantly used for transportation, accounting for over 75 percent of distillate fuel oil consumption, and is critical for agriculture and industry. Rural areas are particularly affected, with Wyoming, North Dakota, and Alaska having the highest per-capita distillate fuel oil consumption in 2024.
Why it matters: This highlights the theme of energy security, as the diesel supply crunch and price increases affect key economic sectors and regions.