Key facts
- The White House is considering voluntary actions from refiners to lower diesel prices.
- A federal ban on diesel exports is unlikely due to potential price increases and political opposition.
- Suspending federal fuel taxes requires Congressional approval, which is improbable before the midterms.
- Republican candidates are facing criticism over rising fuel costs in key election races.
- The U.S. average diesel price reached $6.50 a gallon on Friday, more than double its price since late February.
The White House is seeking ways to ease the burden of high diesel prices on consumers and farmers, particularly ahead of the midterm elections, but faces significant obstacles to implementing impactful measures. Energy Secretary Chris Wright has indicated a preference for voluntary actions from refiners over a federal export ban, which he warns would ultimately increase fuel costs. However, refiners have expressed concerns about potential antitrust issues or shareholder lawsuits if they coordinate such actions. Suspending federal taxes on fuel would necessitate Congressional approval, which is highly unlikely given the GOP's cancellation of House votes and prior dismissal of similar proposals by key senators. Republicans are particularly vulnerable to voter anger over rising fuel costs in agricultural states and competitive districts. In states with Democratic governors, such as Michigan and Wisconsin, Republican candidates are also grappling with the diesel crisis. The administration's efforts follow internal debates about how to address the persistent rise in diesel prices, which has more than doubled since late February due to disruptions in oil shipments from the Strait of Hormuz and damage to refineries in Russia and the Middle East. The U.S. average diesel price stood at $6.50 a gallon on Friday, an increase of over $2.80 from the previous year.