Diesel Price Spikes Prompt Calls for Export Ban Despite Experts' Doubts
US diesel prices have hit a record high of $6.31 per gallon, prompting Senate Majority Leader John Thune to suggest an export ban as a possible solution. However, experts argue that this approach would not work and could even exacerbate the problem.
The current price spike is due to a combination of factors, including continued war-related disruptions to Iranian and Middle East oil flows, Ukrainian drone strikes on Russian refineries, and record US distillate exports. As a result, US distillate stockpiles have fallen to their lowest seasonal level since 1996.
Interior Secretary Doug Burgum has expressed skepticism about an export ban, warning that 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 roughly 70% of US refining capacity is built to process heavy, sour crude imported from abroad, not the light, sweet crude from American shale fields.
The White House has taken a non-committal stance on the issue, with President Trump remaining committed to unleashing American energy dominance and cutting costs. However, Trump's recent commentary has focused on producers, accusing ExxonMobil and Chevron of 'making too much money.'