The United States is experiencing a record surge in diesel production and exports, with figures reaching an all-time high in July, according to Bloomberg data. This increase is a direct response to a growing global diesel shortage, exacerbated by the Iran war, which has disrupted fuel supplies from the Middle East.
U.S. petroleum product exports, driven by record diesel shipments and near-record jet fuel volumes, hit a record 8.2 million barrels per day for the week ending May 1, 2026. Distillate exports, primarily diesel, reached 1,861 thousand barrels per day for that same week, a 32.5% increase from the prior year and surpassing volumes seen during the early years of Russia’s invasion of Ukraine. This surge has made the U.S. a critical supplier for regions like Asia and Africa, which are now outbidding European buyers for U.S. Gulf Coast diesel cargoes.
Despite the booming exports, domestic distillate fuel oil stocks in the U.S. 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. This tight domestic supply has led to significant price increases, with the national average retail price for on-highway diesel fuel rising by $0.289 to $5.640 per gallon in the week ending May 4, 2026, marking a $2.143 increase from a year ago. Regular gasoline averaged $4.452 per gallon, up $1.305 year-over-year. West Texas Intermediate crude oil was priced at $105.38 per barrel on May 1, 2026, an increase of $45.71 from the previous year. U.S. refinery utilization was at 90.1% of operable capacity for the four-week period ending May 1.
This situation presents a political risk for the current administration as American consumers face rising energy costs due to these robust exports and dwindling domestic supplies. The prices of diesel and jet fuel have surged both in the U.S. and globally since the start of the Iran war, with retail diesel prices soaring to about $5.67 a gallon on average. Exports of other key energy products, including gasoline, crude oil, LNG, jet fuel, and ethane, also reached record highs in 2026, contributing to a 20% increase in combined U.S. energy product shipments from January to April compared to the same period in 2025.
According to the U.S. Energy Information Administration, U.S. diesel costs climbed from around $3.72 per gallon in February to about $5.50 a gallon in April. Overall, U.S. gasoline prices have surged 42% and diesel prices have jumped 52% since late 2025, driven by global shortages stemming from the U.S.-Israel war with Iran. The U.S. Energy Information Administration (EIA) also reported that total petroleum product exports for the week ending May 1 reached 8,224 thousand barrels per day, up 23.8% from the same week a year ago.
