U.S. energy exports, including gasoline, diesel, crude oil, LNG, jet fuel, and ethane, have surged to record highs in 2026, primarily to address global supply shortfalls caused by the Iran war. From January to April, combined shipments of these six key products increased by 20% compared to the same period in 2025, totaling over 153 million metric tons. This export boom has helped stabilize global prices, particularly offsetting an 82-million-ton drop in Middle Eastern exports since the conflict began on February 28. U.S. jet fuel exports, in particular, saw an 82% increase year-on-year, with a more than 400% surge to Europe in April alone as refiners fulfilled panic orders from international buyers.
However, this export surge has led to significant domestic price increases and supply tightness. Average U.S. gasoline costs jumped from about $2.91 per gallon in February to $4.10 per gallon in April, and diesel prices climbed from $3.72 per gallon to $5.50 per gallon in April, representing increases of 42% and 52% respectively since late 2025. These price hikes mean gasoline and diesel are approximately 30% and 54% more expensive than a year ago. U.S. natural gas prices for residential users are also up about 14% year-on-year, reaching three-year highs. The primary driver for these domestic price increases is the rally in international crude oil prices, which surged from around $70 per barrel in late February to about $115 per barrel by early May, a 64% increase since the conflict with Iran started.
Domestic stockpiles are under strain as well. U.S. distillate fuel oil stocks stood at 102.3 million barrels as of May 1, 2026, which is 11% below the five-year average and the lowest level since 2005. Distillate exports, predominantly diesel, hit a record 1,861 thousand barrels per day for the week ending May 1, a 32.5% increase year-on-year. Total U.S. petroleum product exports reached a record 8.2 million barrels per day for the same week, with overall petroleum exports hitting 13.6 million barrels per day in April, marking a 15% increase over the previous record in March.
The tension between supporting global energy markets through exports and managing rising domestic fuel costs is intensifying, especially as the U.S. enters its peak driving season. Lawmakers are facing pressure to address the cost of living crisis, and discussions are expected to focus on potential measures to reduce fuel and energy costs, including possibly scrutinizing record export volumes. Some actions, such as waivers for fuel blending and proposed suspensions of federal gasoline taxes, have already been taken. If consumer pushback is strong enough, policymakers might consider restricting energy exports to lower consumer prices, which could become a central issue by the November midterm elections.
