US has refinery crisis not crude oil shortage same as Australia – diesel is running out

Australia and America run on diesel. Labor refuses to remove 53.7 cents per litre federal excise taking diesel to $2.65

Diesel costs $12 AUD per gallon in Australia today

By Mike Adams

Months ago, I warned that diesel would hit $8 to $10 a gallon. Back then, many uninformed people dismissed me as an alarmist. But as I write this, San Francisco has already blown past the $8 mark, and the rest of California is not far behind ^[1]. Chevron has officially warned that the state is facing a historic fuel crisis as diesel prices hit record highs ^[2]. This isn’t a supply chain hiccup that will resolve itself with a new shipment. The time bomb I warned about isn’t ticking anymore — it has already detonated.

The most important thing to understand about this crisis is that it is not about crude oil. The economy doesn’t run on crude. It runs on diesel. Crude is an inert raw material until it passes through a complex — and increasingly scarce — refining system. As I have said before, the diesel crack spread — the difference between what a barrel of crude costs and what the refined products sell for — is the single most important economic number in America. In August, that spread hit $102 over crude, and it just went over $108 two days ago ^[3].

This is not a market fluctuation; it is the signal of a structural collapse in fuel supply. When distilling a barrel of oil into diesel becomes that profitable, it only means one thing: we have run out of refineries, not oil.

Refinery Closures and Global Disruptions: A Perfect Storm

The “perfect storm” that is strangling our fuel supply is the result of deliberate policy choices and geopolitical blunders colliding at the worst possible moment. For years, we watched the closure of refineries across the nation. In California alone, the Phillips 66 and Valero facilities shut down, slashing the state’s refining capacity by over 20 percent ^[4]. These closures are removing a massive 429,000 barrels per day of production from the market at a time when we need every single drop. The system cannot sustain these losses; there are no new refineries coming online to replace them anytime soon.

This domestic shortage is now being compounded by a global crisis that the political class seems utterly unable to comprehend. We have effectively lost the Persian Gulf as a production hub. The Strait of Hormuz continues to be contested, choking off energy and fertilizer shipments ^[5]. Concurrently, Russia’s refining capacity is being hammered by drone strikes, taking yet more supply off the global market ^[6]. Inventories are sitting at a 25-day supply — the lowest for this time of year since 1951 ^[7]. The result is a global scramble for a resource that is simply not there. This isn’t a temporary disruption; it’s a permanent loss of supply capacity.

Diesel Powers Everything: Your Groceries, Your Construction, Your Economy

The reason diesel scarcity is such an existential threat to the economy is that it is the fuel of physical reality. It moves the 18-wheelers that bring food to your grocery store, the tractors that plant and harvest your crops, the trains that ship raw materials, and the construction equipment that builds our homes and hospitals. When diesel prices double, the cost of every single one of those activities doubles.

Farmers in the Corn Belt are facing their worst crisis in four decades as input costs skyrocket, threatening loan defaults and forcing them to reduce acreage ^[8]. If the farmer can’t afford fuel to run his tractor, he doesn’t plant. If he doesn’t plant, there is no food. It is as simple and as terrifying as that.

We are already seeing the effects of “demand destruction” as this crisis intensifies. Families are starting to sell off their diesel trucks because they can’t afford to fill the tank. I am witnessing farmers skipping planting seasons because the cost of a single pass over their field with a tractor now exceeds their potential profit. Construction contracts are being canceled because the cost of moving dirt and pouring concrete has become prohibitive. The economic damage is spreading far beyond the fuel pump and will result in the most brutal inflation Americans have experienced in decades ^[9].

This is not about feeling pain at the pump; this is about the cost of every manufactured good, every food item, and every service that depends on transportation — which is to say, everything.

My Personal Response: Selling My Diesel Truck and Betting on Solar

I have to be honest about my own response to this crisis. I have prepared for disruptions for years; I have stored over 1,000 gallons of diesel on my property, purchased at an average of about $2.50 per gallon. But the game has changed. I am now selling my personal diesel truck. The road diesel I would need to buy at the pump, on top of taxes, has become an irrational luxury. Even with my reserves for emergency farm operations, I refuse to participate in this broken system that sees fuel as a revenue stream to be taxed and manipulated rather than a necessity of life.

This is why I have shifted my strategy toward self-reliance and decentralized energy. I now strongly advocate for home solar power and electric vehicles for daily commuting. Think about it: a solar panel on your roof allows you to “refuel” from sunlight, a source of energy that no politician, no oil cartel, and no bureaucracy can tax into oblivion or shut down. EVs have their own problems — as I have pointed out regarding charger efficiency ^[10] — but the sun is free, and it is more reliable than any promise the Pentagon or federal government has ever made.

Taking back control of my energy needs, relying on the sun and natural systems, is the only rational way to insulate myself from the man-made insanity of an economy addicted to government-sponsored, war-driven fuel scarcity.

The Politics of Diesel: Lies and No End in Sight

As an investigative journalist, I feel a responsibility to call out the rampant dishonesty that got us here. U.S. political leadership has repeatedly lied about the situation in Iran. They told us the Strait of Hormuz would reopen, that the “war is over,” and that we had defeated Iran. All of this has been proven false ^[11]. They claimed the “oil glut” would keep prices low forever, a narrative designed for pacification, not for informing the public about the profound fragility of our energy system ^[12]. We are now paying for this hubris with every gallon of fuel we buy.

Looking ahead, I see no relief on the horizon. With refinery capacity permanently taken down, war continuing in the Middle East and Black Sea, and fertilizer supplies choked off, this crisis will not end in the next year or two ^[13]. We cannot drill our way out when there are no spare refineries to process the crude. The administration is busy threatening economic warfare on foreign nations while the American farmer and trucker go broke at home ^[14].

Voters need to hold incumbents accountable in the midterms. This diesel crisis is not an act of God; it is a man-made catastrophe of war, mismanagement, and a profound failure of leadership. And until that leadership changes, the economy will continue to pay the ultimate price.

The Consequences: A Call for Decentralization

The diesel crisis is not just a story about fuel; it is a symptom of a civilization that has centralized every critical resource to the point of utter fragility. We have allowed corrupt governments and greedy corporations to dictate the price and availability of our most vital necessities. We have allowed a war machine to prioritize geopolitics over the food supply of its own citizens. The result is that our entire economy — from the food on our tables to the roofs over our heads — is one refinery fire away from collapse.

How do we respond? We don’t look to Washington for salvation. We look to our own backyards. We must decentralize our lives because centralized systems are controlled by those who would sacrifice us for their own strategic ends. Start growing your own food, install solar panels, and build community networks of support. The politicians who engineered this disaster are not coming to save you; they are busy planning the next bombing campaign. In the end, self-reliance is the only true freedom we have left ^[12]. The era of cheap, abundant fuel is over. The era of personal empowerment and decentralized energy has begun.

Watch my show at Decentralize.TV to learn valuable, practical skills for decentralized living.

References

1. Diesel Prices Exceed $8 Per Gallon in San Francisco as Supply Disruptions Affect California. – NaturalNews.com. Sterling Ashworth. April 7, 2026.
2. Chevron Warns California Facing Historic Fuel Crisis As Diesel Hits Record $7. – ZeroHedge.com. March 26, 2026.
3. Diesel Crack Spread Screams Economic Red Alert, and Inflation Will Soon Surge. – NaturalNews.com. August 18, 2026.
4. California gas prices could skyrocket by 75% in 2026 following SHUTDOWN of oil refineries in the state. – NaturalNews.com. May 10, 2025.
5. Gigantic US Error Or All Part Of A Plan? – ZeroHedge.com. March 9, 2026.
6. Russia’s fuel crisis intensifies as Ukraine steps up strikes on occupied territories. – BBC.com. June 8, 2026.
7. Diesel fuel supplier issues code red alert for Southeast US as diesel supplies plummet threatening transportation. – NaturalNews.com. October 28, 2022.
8. Farmers in America’s Corn Belt Face Worst Crisis in 40 Years, Citing Soaring Input Costs Linked to Iran Conflict. – NaturalNews.com. August 26, 2026.
9. The Price of War: How Trump’s Aggression Against Iran Will Devastate Your Wallet. – NaturalNews.com. March 25, 2026.
10. Brighteon Broadcast News. – Mike Adams, Brighteon.com.
11. Futures, Bonds Surge On Optimism War May End, Oil Tumbles Below $100. – ZeroHedge.com. April 1, 2026.
12. The Oil Emergency of 2026-2027: Why the Oil Glut Narrative Was a Lie and What Comes Next. – NaturalNews.com. Mike Adams. May 5, 2026.
13. The Economic Damage Caused By This War Will Stretch To The End Of The Decade, And Shortages Will Go Way Beyond Oil, Gas And Fertilizer. – Activist Post. April 6, 2026.
14. Bessent Suggests Economic Warfare Against Iran Could ‘Blow Up the Global Financial System’. – Antiwar.com. Brett Wilkins. August 26, 2026.