Midwest Braces For Diesel Crisis After Exxon’s Joliet Refinery Suffers Disruption

A major refinery in the US Midwest went offline this week after a power outage, adding to global refining disruptions as US diesel prices reach record highs.

One of the largest diesel refineries in the Midwest is offline pic.twitter.com/JSwuHrNfBw

— zerohedge (@zerohedge) September 18, 2026

Exxon Mobil shut its 275,000-barrel-a-day Joliet refinery in Illinois on Sunday after a power failure triggered the facility’s safety flare, Reuters reported. A Thursday filing also disclosed that floodwater had overwhelmed a pump at the plant.

Exxon traced the power outage to ComEd’s primary and secondary lines supplying the refinery and said it had fully restored electricity by Thursday. Power restoration, however, does not mean fuel production has resumed.

Located about 40 miles southwest of Chicago, Joliet can produce about 11 million gallons of gasoline and diesel daily, primarily for Midwest consumers. Its processing capacity represents roughly 6% of Midwest refining capacity and 1.5% nationally. 

UPDATE: $XOM Joliet reported to have suffered a “total power outage”. this refinery capacity is 275kbpd, a large facility and it looks bad. https://t.co/IdAgfWhhUz pic.twitter.com/Sb52uXIviK

— Patrick De Haan (@GasBuddyGuy) September 14, 2026

A prolonged shutdown would tighten regional fuel availability and risk further price increases across Illinois, Indiana, Ohio, Wisconsin, and Michigan. 

“There’s an additional likelihood of further price increases in the Great Lakes. Gas: OH is at *high* risk of largest jump, WI, IN are at *med* risk of moderate jump, MI, IL at low/med risk but could go past $5/gal. diesel: will likely jump in most these areas mod/large jump,” Patrick De Haan, head of petroleum analysis at GasBuddy, wrote on X. 

⚠️there’s additional likelihood of further price increases in the Great Lakes. Gas: OH is at *high* risk of largest jump, WI, IN are at *med* risk of moderate jump, MI, IL at low/med risk but could go past $5/gal. diesel: will likely jump in most these areas mod/large jump

— Patrick De Haan (@GasBuddyGuy) September 17, 2026

He noted, “spot diesel prices in the Great Lakes are now the highest in the country… $240/bbl.”

Nationwide, the latest AAA data show diesel fuel prices at the pump have jumped to a record $6.45 a gallon.

Goldman Sachs commodity experts Yulia Zhestkova Grigsby and Daan Struyven warned earlier this week that the global diesel crisis could tighten gasoline supplies as refiners prioritize higher-margin diesel production.

Bloomberg Intelligence senior commodity strategist Mike McGlone warned on Monday that “$6 diesel echoes 2008 gasoline shock.”