LUBBOCK, TX – Record diesel prices are putting fresh attention on U.S. refining capacity as farmers face higher harvest, hauling, and livestock transportation costs. Global supplies have tightened as the Iran war disrupts Middle Eastern fuel flows and attacks reduce output at major Russian refineries.
U.S. diesel averaged $5.967 per gallon September 7, according to the Energy Information Administration, before market estimates moved above $6. Russian refinery damage, export restrictions, and reduced Middle Eastern fuel shipments have tightened global diesel availability.
America First Refining plans a $4 billion Brownsville, Texas, refinery designed specifically for light U.S. shale crude. Chairman John Calce told the Agribusiness Report the company expects equipment on site in 2028 and full operation in 2029.
Interior Secretary Doug Burgum separately said additional domestic refining could turn more Permian crude into diesel, gasoline, and jet fuel for agriculture, trucking, aviation, and consumers.
The Brownsville project will not relieve today’s diesel shortage, but it represents a longer-term effort to add processing capacity and reduce U.S. exposure to global refinery disruptions.
Farm-Level Takeaway: New refining capacity will not lower diesel prices immediately, but projects designed for U.S. crude could strengthen long-term domestic fuel supplies.