US Diesel Prices Hit Record High, Senate Majority Leader Floats Export Ban
US diesel prices have reached a record high of $6.31 per gallon, prompting Senate Majority Leader John Thune to suggest an export ban on refined petroleum products.
The national average price of diesel rose after three compounding supply shocks: continued war-related disruptions to Iranian and Middle East oil flows, Ukrainian drone strikes on Russian refineries, and a record pace in US distillate exports that drained domestic tanks.
Interior Secretary Doug Burgum expressed skepticism about the ban's effectiveness, warning it could invite retaliation from trading partners and hurt consumers in states like California that rely partly on foreign fuel imports.
The Center for Strategic and International Studies estimates that 70% of US refining capacity is built to process heavy, sour crude imported from abroad, not light, sweet crude from American shale fields. A ban would likely trap US-produced light crude at home, yielding little diesel and potentially deepening the shortage.