U.S. Rack Gasoline Rises 2.46cts; ULSD Up 2.33cts

DAVENPORT, FL (DTN) – Wholesale rack prices for ultra-low sulfur diesel (ULSD) and gasoline moved modestly higher Tuesday (4/7), extending Monday’s advance, as both physical and futures markets strengthened on renewed geopolitical escalation tied to the Iran war.

Nationwide ULSD rack prices averaged $4.5116 gallon, up 2.33cts from Monday’s $4.4883 gallon, according to DTN data. Conventional unleaded gasoline rack prices averaged $3.4365 gallon, up 2.46cts from $3.4119 gallon.

Futures prices moved higher Tuesday morning. Front-month May NYMEX ULSD futures increased 17.54cts to $4.5038 gallon, while May RBOB gasoline futures rose 1.89cts to $3.3271 gallon. WTI crude for May delivery climbed $2.49 to $114.90 bbl.

Support in futures followed renewed escalation in the Middle East after Israeli strikes targeted Iranian infrastructure ahead of a U.S. deadline tied to reopening the Strait of Hormuz. At the same time, the U.S. reiterated the threat of broader action against Iran’s energy assets if the blockade remains in place, reinforcing concerns over prolonged disruptions to global supply flows.

That move higher in futures was more in line with what had been developing in physical markets, with rack prices continuing to push higher, though at a slower pace after Monday’s sharp jump.

ULSD racks were mixed but generally higher across regions Tuesday. East Coast ULSD rose to $4.6111 gallon, maintaining a premium of 9.95cts above the national average. Gulf Coast prices increased to $4.5344 gallon, while Midwest values climbed to $4.2320 gallon, though still holding a 27.96cts discount to the national benchmark. West Coast ULSD advanced to $5.5850 gallon, extending the strongest regional premium at $1.0734 above the U.S. average, while PADD 4 remained below the benchmark at $4.1635 gallon.

Relative to the national ULSD rack average of $4.5116 gallon, regional structure remained largely unchanged, with PADD 5 continuing to hold a wide premium, while the Midwest and Rocky Mountain regions traded at discounts.

On conventional unleaded gasoline racks, all regions moved higher Tuesday. East Coast prices increased to $3.1859 gallon, while Gulf Coast values rose to $3.1857 gallon, both maintaining discounts of roughly 25cts to the national average. Midwest gasoline climbed to $2.8954 gallon, holding the deepest discount at 54.11cts below the benchmark. Rocky Mountain prices rose to $3.1829 gallon, while West Coast gasoline increased to $4.0418 gallon, maintaining the only premium position at 60.53cts above the national average.

Compared with the national gasoline average of $3.4365 gallon, regional differentials remained consistent, with PADD 2 continuing to reflect the weakest pricing structure and PADD 5 maintaining the strongest premium.

Premium gasoline rack prices also moved higher across regions, broadly in line with conventional gasoline, with West Coast values remaining elevated relative to other markets.

The continued strength across both futures and rack prices points to a market still driven by supply-side risk, with physical pricing increasingly reflecting the tighter backdrop. That tightness is also showing up in structure, with ULSD backwardation holding above 38cts and RBOB above 15cts, reinforcing signals of strong prompt demand and immediate supply needs across the refined products complex.