Markets & Supply

It may seem logical that if the United States stops exporting diesel, more fuel will stay here and prices will fall. But more diesel in the United States does not necessarily mean lower prices at the pump, especially when the United States is not facing a shortage of diesel. If refiners cannot export or economically store surplus diesel, some could reduce production, which tightens supplies, puts upward pressure on fuel prices and weakens U.S. energy security.

We've heard some talk lately about export bans and whether cutting off U.S. crude oil or American-made diesel, gasoline and refined products from the global market could be used as a tool to cut prices for consumers. Administration officials like Energy Secretary Chris Wright and Interior Secretary Doug Burgum see export bans as a clear unforced error, and they’re not alone. Other experts, commentators and analysts share the view that an export ban would be a costly and counterproductive mistake. It would mean less U.S. fuel production, tighter supplies, greater energy security risks and higher prices.

Geopolitical conflicts, refinery outages, export restrictions and supply chain disruptions have reduced the world's ability to convert crude oil into usable fuels, even as global consumer demand remains strong. The following perspectives from analysts and reporters help explain why fuel prices today aren’t moving in lockstep with crude oil prices, and why refining capacity has become one of the most important factors shaping what consumers pay at the pump.

Some have been surprised by recent refining margins, earnings in the refining sector and a seeming disconnect between finished fuel prices and prices of crude oil. There’s a reason for this: in short, while the price of crude oil is the biggest factor determining fuel prices, it’s not the only factor, and there’s particular tightness in the global refined product market which hadn’t been the case until recently. Take a look to see what several analysts, reporters and market experts have explained about this topic.

Supply disruptions tied to the Strait of Hormuz have renewed questions about U.S. energy security and why events halfway around the world still affect energy markets here at home. While we are the world’s largest crude oil producer and make more than enough gasoline, diesel and jet fuel to meet domestic demand, we still import and export both crude oil and refined products.

U.S. refiners play a critical role in moments of supply/demand imbalance. Thanks to their scale, complexity, efficiency and global reach, American refineries keep fuel flowing efficiently here at home while also supplying much-needed gasoline, diesel, jet fuel and other products to our allies abroad.

WASHINGTON, D.C. — The American Fuel & Petrochemical Manufacturers offered the following explanation of fuel price fundamentals.

Gasoline and diesel prices are front-of-mind for Americans, and people are understandably interested in whether there’s a connection between higher pump prices (which refiners do not set) and higher profits in the refining industry. That deserves a deeper dive.

WASHINGTON, D.C. — American Fuel & Petrochemical Manufacturers (AFPM) President and CEO Chet Thompson issued the following statement on the inauguration of the 47th President of the United States and the opportunity to advance policies that deliver for American energy manufacturers and consumers: