U.S. refineries shift from gasoline toward diesel and jet fuel

· Oil & Gas · United States

U.S. refineries are producing a smaller share of gasoline from each barrel of crude and shifting toward diesel and jet fuel as soaring margins on those products reshape refining economics. Gasoline yields averaged below 45% during the first eight months of 2026, a dramatic change from normal operation. The shift follows strong profits on middle distillates, which are in high demand. For refiners, the change alters product slates and how crude is allocated across the barrel; for consumers, it points to tighter gasoline supply even as distillate output rises to capture richer margins.

Why it matters：Refiners reweighting the barrel toward distillates affects gasoline availability and crack spreads, a structural signal for fuel markets already strained by war-driven price swings.

Key points

  • Gasoline yields averaged below 45% in the first eight months of 2026.
  • Diesel and jet fuel margins have soared.
  • The shift changes how refiners allocate crude across products.

Sources (original reporting)

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