Diesel Hits Record $6.53 as Republican Export Ban Push Draws Backfire Warnings

U.S. average diesel prices hit a record $6.53 a gallon on Tuesday, up 77% year over year, prompting Republican lawmakers from agriculture-heavy states to push for a ban on diesel exports. Sen. Chuck Grassley of Iowa and Rep. Ashley Hinson are backing restrictions, while Rep. Tim Burchett of Tennessee introduced two bills on Sept. 17 to bar exports through January 2027 or trigger a ban at $5 a gallon. Energy analysts said an export ban would backfire. U.S. refineries produce about 5.3 million barrels per day of distillates against 3.6 million barrels of domestic demand, with surplus sold globally. GasBuddy analyst Patrick De Haan said barring exports would deepen a worldwide shortage worsened by Russia's July export ban and war-related disruptions, pushing prices higher. De Haan said alternatives include extending a Jones Act waiver expiring Nov. 15, suspending the renewable fuel standard to cut prices 10-20 cents a gallon, or reopening the Strait of Hormuz. He added that U.S. diesel shortages are not occurring.