U.S. refineries are producing a smaller share of gasoline from each barrel of crude they process. They are shifting toward diesel and jet fuel, where margins are higher, according to EIA data reported by Oilprice.com.
U.S. refiners are making less gasoline from every barrel of crude oil they process and pushing output toward diesel and jet fuel instead. Soaring margins on those products are reshaping the economics of American refining.
Gasoline yields fall below the five-year low
Gasoline yields averaged below 45% during the first eight months of 2026, according to data from the U.S. Energy Information Administration (EIA). They fell below the previous five-year low in every month.
The industry typically produces 45 to 50 barrels of gasoline for every 100 barrels of crude processed, so the drop marks a significant departure. Gasoline prices are elevated, but diesel and jet fuel are considerably more profitable to produce as global fuel shortages push refining margins higher.
Jet fuel hits a record share of output
Distillate fuel oil yields, which include diesel and heating oil, exceeded their five-year average in every month through August. Jet fuel shifted even more. In March, its share of U.S. refinery output exceeded 12% for the first time on record, and it stayed at or above that level through August.
Meanwhile, diesel prices reached their highest nominal levels on record in September.
A strained global refining market
The Iran war has disrupted Middle Eastern refining operations, while Ukrainian attacks on Russian refineries have further restricted supplies of diesel and other petroleum products. Global refinery crude runs dropped by 4.8 million barrels per day in the second quarter, according to EIA data. Throughput recovered by 1.8 million bpd in the third quarter but remained approximately 5% below year-earlier levels.
U.S. refineries, by contrast, increased crude processing by 500,000 bpd in the second quarter and by another 500,000 bpd in the third. That helped compensate for lost production elsewhere.
The shortage has changed which fuels deliver the greatest returns, and refiners now favor middle distillates even at the expense of gasoline yields.
Sources: Oilprice.com, U.S. Energy Information Administration
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