# California diesel fuel supply and price crisis > Live situation record from CLSTR: https://clstr.news/situations/california-diesel-fuel-supply-and-price-crisis > Updated: 2026-09-12T18:18:33.000Z. Sources: 7. Developments: 2. California is experiencing a severe diesel fuel crisis driven by a reduction in refining capacity. The closure of major facilities, including those operated by Phillips 66 and Valero, has decreased the state’s refining capacity by more than 20 percent. This structural shortage has caused diesel prices to reach record highs, with AAA reporting averages near $7.71 per gallon in early September. By mid-September, fuel costs escalated further, with diesel prices in some areas exceeding $9.00 per gallon. The surge was so significant that some gas stations reportedly reached the $9.999 limit of their digital pump displays. While state taxes, climate regulations, and unique fuel blend requirements contribute to high costs, the diminished refining system remains a primary factor. In response to the extreme pricing, regulators have launched investigations into individual stations within the Los Angeles and San Bernardino areas. The crisis continues to impact the logistics and agricultural sectors, as rising fuel costs strain the supply chain. ## Timeline ### 2026-09-12: California fuel prices surge as diesel hits display limits California fuel prices have surged, with diesel reaching levels that max out digital pump displays at $9.999 per gallon. High costs are driven by state regulations, refining issues, and global oil markets. 4 sources. https://clstr.news/cluster/california-fuel-prices-surge-as-diesel-hits-display-limits ### 2026-09-05: Diesel fuel crisis hits California as refinery capacity declines California and the US face a diesel crisis driven by refinery closures rather than oil shortages, with record-high prices straining transport, logistics, and agricultural sectors. 4 sources. https://clstr.news/cluster/diesel-fuel-crisis-hits-california-as-refinery-capacity-declines --- Cite as: California diesel fuel supply and price crisis. CLSTR, https://clstr.news/situations/california-diesel-fuel-supply-and-price-crisis