America Is Paying a Lot for Fuel, Not Running Out of Gasoline

U.S. Energy Information Administration figures show gasoline inventories rose by 800,000 barrels last week to 207.7 million barrels, leaving stocks about 5% beneath the five-year seasonal norm. Refineries processed roughly 17.3 million barrels per day, operating at near-capacity utilization of 96.8%, while gasoline production increased to about 9.6 million barrels per day. Four-week average gasoline demand stood at 8.8 million barrels per day, slightly lower than the same period a year earlier. Despite those signs of supply resilience, pump prices have climbed: AAA reported an average price for regular gasoline of $4.44 per gallon, up 16 cents over the prior week and more than $1.20 higher than a year ago. Diesel has been particularly pressured — the national average reached a record $6.40 per gallon — and inventories of distillates remain thin, about 13% below the five-year average even after a 1.6 million-barrel weekly build. Analysts point to international refiners and export disruptions as drivers of the diesel squeeze. The report highlights lost Russian refining capacity after Ukrainian drone strikes and protracted Russian diesel export limits, as well as reduced product exports tied to the Iran war, removing barrels from an already tight global market. Those global dynamics, combined with localized refinery issues, have pushed retail diesel prices higher in states around the Great Lakes, with quoted retail levels approaching $6.50–$6.65 per gallon in Michigan, Ohio, Indiana and Illinois. The rise in gasoline prices has also generated viral social media claims that U.S. stations are broadly running dry. Observers including GasBuddy’s Patrick De Haan have disputed those claims, and the EIA data — showing rising gasoline inventories and production — do not support a nationwide gasoline shortage. The analysis notes, however, that consumer panic buying driven by pricing fears could create localized shortages through sudden spikes in demand, even if overall supplies remain adequate. Other market indicators are mixed: crude oil inventories sit about 1% above their five-year average, while West Texas Intermediate crude is trading north of $100 per barrel, contributing to higher fuel costs. The combination of strong refinery utilization, thin diesel stocks, and constrained global product exports underpins current price pressure, particularly for diesel, even as gasoline supply fundamentals appear stable relative to the dire narratives circulating online.