Houston diesel prices near records as global tensions hit the pump

HOUSTON - If consumers plan on filling up a diesel tank in the Houston area, they should prepare for some serious sticker shock as prices are skyrocketing across the country, and the Bayou City is nearing record-breaking territory.

The view from the pump

Local perspective:

At the intersection of Buffalo Speedway and Southwest Freeway, the reality of the market is clear. At one local Shell station, the price for diesel has already hit $5.49 a gallon.

While the current Houston average for diesel is sitting at approximately $5.02 per gallon, experts warn that the mark may be short-lived. According to officials at GasBuddy, prices are expected to continue their upward climb in the coming days.

So far, prices have yet to top the current record high for diesel costs in Houston, which reached an average of $5.17 per gallon in 2022.

Why is diesel rising faster than regular gas?

Dig deeper:

Many drivers have noticed that while regular gasoline prices are up, diesel is outpacing it significantly. Patrick De Haan, Head of Petroleum Analysis at GasBuddy, says the disparity comes down to refinery output and global logistics.

"Diesel prices have gone up almost 66%, whereas gasoline has gone up the least," De Haan said. "Less jet fuel flows out of refineries, slightly more diesel flows out of refineries, and a lot of gasoline flows out of refineries. So when you have an issue that correlates to oil and other refineries in the Middle East now can't ship their oil and their diesel, their jet fuel gasoline out through the Strait of Hormuz, there's been a huge impact on diesel because it's now in far more demand."

The primary driver is the ongoing disruption in the Strait of Hormuz. With tankers carrying oil, diesel, and jet fuel unable to move freely through the critical shipping lane, supply has tightened just as demand is holding steady.

"We're seeing a much more profound impact on the products that are less produced," says De Haan. "Jet fuel and diesel are two of those."

The ripple effect

Why you should care:

It isn’t just semi-truck drivers feeling the pinch. Diesel is the backbone of the Houston economy, powering:

• The Port of Houston: Container ships and heavy machinery
• Railroads: Trains moving goods through the city
• Delivery Services: The last-mile trucks bringing packages to your door

Analysts warn that as the cost of transport rises, so will the price of nearly everything else. Consumers should expect the cost of household staples—from a gallon of milk to Amazon packages—to tick up right along with the price at the pump.

How to save:

What you can do:

For those who rely on diesel, De Haan offered a few practical tips to stretch a tank:

• Slow Down: For semi-truck drivers, reducing speed by just 2 to 3 mph can significantly improve fuel efficiency
• Limit Idling: Avoid excessive idling whenever possible
• Shut it Down: Turn off your engine when the vehicle is not in active use