Skyrocketing diesel prices rattle Republicans as midterms approach
Diesel prices are hitting record highs as the Middle East conflict intensifies, affecting American farmers and rural residents
Diesel fuel, which powers the global economy and the American heartland, is hitting record prices as the war in the Middle East intensifies, leaving Republican candidates reeling and contemplating extreme steps that economists warn could only increase pain for consumers.
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economists → skyrocket → consumers
Republicans in key states like Iowa and Michigan called for ending exports of diesel refined in the United States to help boost domestic supply.
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Republicans → call → supply
President Donald Trump indicated he backs that step, though his energy secretary on Wednesday said a “blanket ban” won't happen.
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ban → indicate → Wednesday
The U.S. has used 4.1 million barrels of diesel per day this year, and it has exported 1.5 million per day so far, according to S&P Global Energy.
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it → use → Energy
The pain is obvious to anyone who drives a diesel-fueled vehicle or relies on a diesel generator to produce power.
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who → drive → power
A gallon of diesel cost $6.52 Wednesday, up 73% from $3.77 right before the beginning of the war with Iran, according to AAA.
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gallon → cost → AAA
But the problem will likely spread to every consumer, fueling Democratic efforts to retake control of Congress by harnessing anger over runaway costs and an unpopular overseas conflict.
“The price of diesel touches everything in our economy that needs to move,” said Joseph Brusuelas, chief economist for RSM.
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Brusuelas → spread → RSM
“That includes the thing we buy the most of, groceries.”
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we → include → most
Although regular gas prices usually get more attention, diesel has swiftly become a hot issue on the campaign trail.
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diesel → get → trail
Adam Hamilton, a Democratic Senate candidate who has mounted a surprisingly strong challenge to Republican Sen. Roger Marshall in Kansas, told supporters in a Topeka coffee shop this week that farmers are afraid that it's getting harder to make ends meet.
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ends → mount → shop
“A war has sent up the price of diesel,” Hamilton said.
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Hamilton → send → diesel
“These guys said, ‘We don’t know if we’re going to keep the farm.’”
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we → say → farm
Elaine Luria, a Democrat running for a southeastern Virginia House seat, cited the high price of diesel at a Virginia Beach roundtable Wednesday.
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Luria → run → roundtable
“Iran is no further from acquiring a nuclear weapon.
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Iran → acquire → weapon
And Iran’s proxy groups, such as the Houthis in Yemen, are now expanding the footprint,” she said in an interview, adding that the conflict is becoming “an expanding economic crisis.”
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conflict → expand → interview
Luria is a former congresswoman trying to reclaim her seat from Republican Rep. Jen Kiggans.
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Luria → try → Kiggans
Republicans like Rep. Ashley Hinson, who is running for Senate in Iowa, have called for an immediate end to the war and a ban on selling diesel overseas, hoping the extra fuel would then lower prices for Americans.
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fuel → run → Americans
“Iowans are being squeezed and shouldn’t have to foot the bill at the pump or the checkout line for the war in Iran,” Hinton said.
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Hinton → squeeze → Iran
“We need to use every option at our disposal to provide some relief from high prices.”
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We → need → prices
The idea has split Republicans.
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idea → split → Republicans
Senate Majority Leader John Thune of South Dakota said he's open to it.
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he → say → it
Sen. Chuck Grassley, who is also from Iowa, has become the proposal's strongest champion, rejecting criticism from his colleagues from fuel-producing states.
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who → become → states
“IF U CAN EMBARGO CHIPS U CAN EMBARGO DIESEL,” Grassley posted on social media, referring to export controls on computer technology.
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Grassley → embargo → technology
Trump on Tuesday told reporters that “I've called for that too,” although Treasury Secretary Scott Bessent said the administration was still exploring how it might lower diesel prices.
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it → tell → prices
Energy Secretary Chris Wright echoed that point Wednesday, telling a climate conference in New York that “nobody wants a full blanket ban of zero exports of diesel, that's not what's being discussed,”
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what → echo → diesel
Diesel prices have skyrocketed due to a collision of events.
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prices → skyrocket → events
The Middle East produces a disproportionate share of the oil used to refine diesel, leading its price to rise faster than gasoline since the conflict began in February.
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conflict → produce → February
The closure of the Strait of Hormuz during the war took about 20% of the world’s oil off the market, which raised the prices of diesel, gasoline and jet fuel.
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which → take → diesel
Some of that supply has come back, but it’s nowhere near prewar levels, said Debnil Chowdhury, who leads the Americas and Europe fuels and refining team at S&P Global Energy.
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who → come → Energy
Then there were significant attacks by Ukraine on refineries in Russia, taking 800,000 to 1 million barrels per day of diesel off the market, according to S&P.
“These attacks have been pretty prominent," Chowdhury said.
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Chowdhury → be → S&P.
"If there is a way to a peace deal or a peace agreement announcing that there will be no more attacks on Russian refineries, on Middle Eastern refineries ... that would obviously make the largest impact on the underlying price.”
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that → be → price
“The last few months eroded everyone’s cushion, but the last few weeks?
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months → erode → cushion
Diesel went from under $6/gallon to over $6.53.
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Diesel → go → 6.53
You tell me what business, small or even large, budgeted for that,” William Stern, chief executive officer of Cardiff, a San Diego-based small business lender that's seen requests for loans spike due to the price increase, wrote in an email.
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requests → tell → email
An export ban could make an impact — in the wrong direction.
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ban → make → direction
The American Petroleum Institute warned that diesel prices would actually rise for most Americans if an export ban is enacted, a caution shared by several economists.
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ban → warn → economists
“That will result in Americans taking a one-two punch for food and fuel prices that just don't stop,” Brusuelas said.
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Brusuelas → result → food
If U.S. refineries, which take crude oil and turn it into gasoline, diesel and jet fuel, stopped exporting diesel, they would wind up with a surplus of the material.
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they → take → material
They would need places to store it.
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They → need → it
Once those storage tanks filled up, analysts warn, refiners would have to stop making diesel.
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refiners → fill → diesel
…and 14 more, not listed.
The Aporia
