DOE Presses Refiners to Lift Diesel Output as National Average Tops $6 a Gallon

The U.S. Department of Energy has urged refiners at home and abroad to further raise diesel production, Reuters reported, citing two senior department officials. The push is the latest federal effort to pull diesel prices down from record highs, with the national average stuck above $6 per gallon. The talks follow President Trump's decision to waive sanctions on Russian exports to secure additional diesel supply. Russia had banned diesel exports earlier this year after Ukrainian drone strikes disrupted refinery operations; it lifted the ban after the waiver. Analysts say the volumes agreed by the two presidents are too small to make a difference. Other measures include temporarily removing the federal tax on red-dye diesel and an $8-billion fuel aid program announced this week by the Department of Agriculture. The government has also invoked the Defense Production Act to restart idled plants. Energy Secretary Chris Wright said "we are talking about reopening every refinery we can," but cautioned that not all restarts will happen. Industry analysts note restarts take time and money, and even with $1 billion in funding will not occur overnight.