Bloomberg reported on the 20th (local time) that the national average retail price for diesel in the United States has exceeded $6.50 per gallon (approximately 3.8 liters) for the first time.

According to the American Automobile Association (AAA), the national average retail price for diesel stood at $6.505 per gallon as of the 19th.

US diesel prices first broke past the $6-per-gallon mark on the 11th of this month, hitting $6.06 per gallon following news of an attack on an oil pipeline in Saudi Arabia.

Prices have surged by about 70% since February 28, when the war with Iran began, and have risen by 87 cents per gallon this month alone, repeatedly breaking the previous record high of $5.81 set in June 2022 right after the outbreak of the war in Ukraine.

Analysts attribute the price hike to continued disruptions in crude oil supply and demand from the Middle East via the Strait of Hormuz, which are hindering petroleum product production at refineries worldwide. Additionally, Russian authorities banned diesel exports after Russian refineries were bombed.

While personal vehicles in the US rarely use diesel, trucks responsible for transportation, as well as agricultural machinery, ships, trains, and generators, all rely on diesel fuel.

Bloomberg forecasted that "ahead of the November midterms, this surge in diesel prices could erode support for the Republican Party in agricultural regions like Iowa, as well as in states heavily dependent on heating oil like Maine."

When adjusted for cumulative inflation since June 2022, when diesel prices were at their peak, the real purchasing power value makes that previous period more expensive. However, with real income growth stagnating, the pain felt by consumers could be greater.

Amid concerns over the impact on the midterm elections, some voices within the Republican Party have emerged calling on the Trump administration to implement a ban on diesel exports.

Senator Chuck Grassley (Republican-Iowa), who represents the agricultural state of Iowa, argued on social media that day, "If our government can ban the export of semiconductors to China, it can also ban the export of diesel to help American farmers and truck drivers."

The day before, Senator Grassley also pointed out on social media that "high diesel prices are dragging down farmers' incomes," asking, "Why doesn't President Trump ban diesel exports just as presidents in the 1970s banned agricultural exports?"

This argument for a diesel export ban draws on precedents from the 1970s, when the US temporarily banned the export of certain agricultural products like soybeans in response to soaring food prices.

Representative Tim Burchett (Republican-Tennessee) introduced a bill on the 16th to temporarily ban diesel exports until January of next year in response to the recent surge in domestic diesel prices.

(Photo: AP, Yonhap News)