If your business runs on diesel and diesel exhaust fluid (DEF), you’re probably already feeling the squeeze. Prices continue to climb, supply feels tighter than ever, and things seem to change every week. Whether you’re running trucks all over the state, managing agricultural equipment, or keeping heavy machinery moving on job sites, it’s more important than ever to understand what’s behind these disruptions and what they could mean for your bottom line.
A tight diesel market may be the culprit
According to GasBuddy, the national average diesel price rose 3.2 cents in the second week of July 2025, hitting $3.676 per gallon. That might not sound like much, but it’s part of a steady climb this year driven by deeper supply and demand issues. Diesel inventory in the United States is also lower than average. These challenges also cause prices to vary dramatically from state to state. So what’s causing these market conditions? Let’s break it down.
Lower refinery output
One of the biggest challenges is refinery output. Although refineries are running at pretty high levels this year, many are producing less diesel than usual. With strong demand for gasoline, especially during the busy summer driving season, refiners are focusing on gasoline production, cutting back on diesel output. This is a significant concern for industries such as farming and construction, which rely heavily on diesel during busy summer seasons.
Global diesel supply is still tight
This isn’t just a U.S. problem. Diesel supply is tight worldwide. Even as some countries, such as China, rebuild their oil inventories, developed nations generally have limited supplies of diesel. This global pressure keeps crude oil prices high, which in turn drives diesel prices up here at home.
Tariffs and trade shifts add uncertainty
Adding to the market stress are ongoing trade disputes and tariff talks. The rapid-fire announcements of new tariffs, negotiations, and policy shifts this year have made the market unpredictable. While oil prices haven’t dropped dramatically yet, this uncertainty can quickly shake up demand forecasts and pricing. For businesses relying on diesel, that volatility makes it challenging to plan budgets and manage expenses.
What about diesel exhaust fluid?
Rising diesel costs aren’t the only headache your business may be facing. Managing your DEF supply is becoming just as challenging. DEF is essential for maintaining the cleanliness of diesel engines and ensuring compliance with emissions regulations. Most diesel vehicles and equipment manufactured after 2010 rely on DEF to meet emissions standards.
DEF is a non-toxic mix of urea and purified water that works with your engine’s exhaust to break down harmful emissions. But unlike diesel fuel, DEF requires a unique refining process. Its price depends heavily on the global supply of urea, which has been disrupted by trade issues and shipping delays a lot this year. But this year, prices are creeping up, and supply is getting tighter. However, an even more challenging problem — maintenance disruptions at DEF refineries —may test the market even further. Here’s a list of facilities scheduled for shutdowns:
- CF Industries’ Donaldsonville Complex, the biggest DEF plant in the U.S., is offline for 6–8 weeks this summer.
- CF’s Woodward and Yazoo City plants have shutdowns coming in August and September.
- Nutrien’s Geismar facility is also planning a summer maintenance period.
- Plants in Enid, OK, and Beulah, ND, are also facing downtime.
But maintenance shutdowns aren’t the only problem. One refinery facility, the St. Helen’s plant owned by Dyno Nobel in Oregon, is scheduled to shut down for good by early 2026 or possibly even sooner. The facility requires significant upgrades, and although a planned maintenance period was recently cancelled. Unfortunately, this shutdown is part of an ongoing trend by companies that are shutting down facilities due to high upgrade or maintenance costs.
With all these major plants offline simultaneously, the US DEF supply chain is under significant pressure. Prices and supply chain issues are likely to continue plaguing the market for the remainder of this year.
How can your business stay ahead?
While none of us can control diesel prices, there are smart steps your business can take to weather the storm:
- Keep an eye on the diesel market. Diesel prices can shift quickly. Staying informed about market trends and supply forecasts will help you better prepare budgets and avoid surprises.
- Order in bulk. If your business uses a lot of diesel, buying in bulk can reduce costs and limit waste. Greg’s Petro offers flexible options like bulk delivery, fleet fueling cardlock programs, and even remote tank monitoring so you can manage your fuel supplies more efficiently.
- Build a DEF inventory. If it’s feasible, keeping extra DEF supplies on hand can protect your budget from sudden price spikes or supply shortages. Stockpiling a healthy inventory is a smart way to avoid disruptions.
- Pay attention to local prices. Diesel prices vary widely by location. When bidding on jobs or planning travel routes, factor in fuel costs at different stops. You could also consider joining our fleet fueling program. As a member, you’ll get access to a nationwide cardlock fueling network at wholesale fuel prices. It’s a great way to reduce your fuel costs and get competitive prices wherever your business goes.
We know that rising diesel prices aren’t just numbers on a pump for your business. They’re a line budget item that can significantly affect your profit margin and potential for future growth. That’s why it’s so frustrating for business owners and fleet managers to navigate the complex market that’s so easily shaped by global events, supply challenges, refinery operations and seasonal demand. All of these factors are largely out of your control, but still have a significant impact on your business.
At Greg’s Petro, we understand how complicated this all feels. That’s why we’re here to help you cut through the noise. We’re here and ready to support you and your commercial fuel delivery needs. Reach out for our help today!