Record $5.89 per Gallon: US Energy Minister Links Diesel Price Spike to Strikes on Russian Refineries

Against the backdrop of a record rise in the cost of diesel fuel in the US, Energy Minister Chris Wright publicly explained the reasons behind the price surge, pointing to systemic problems in the global oil refining market and, in particular, to damage at Russian refineries. The statement was made on CBS in response to a host's question about the record diesel price and the possible introduction of export restrictions on the fuel.

Record at US Gas Stations

According to the figures cited during the discussion, the cost of diesel fuel in the US reached a record $5.89 per gallon this week. It was precisely this figure that prompted the head of the Energy Department to comment publicly, attempting to break the situation down into its components and explain why fuel prices are rising even without an extreme spike in the price of crude oil itself.

Washington's Version: The Bottleneck Is Refining

Wright emphasized that the key factor was the serious damage to Russian oil refineries. In his words, Russia had previously been a major exporter of diesel fuel, whereas today it has not only halted its exports abroad but has itself become a major importer of gasoline. "It is global oil refining capacity that is the cause of high gasoline and diesel prices — even more so than oil prices," the minister stated.

Strikes on Russian Refineries as a Trigger

The context for Wright's words is provided by data from the company Fire Point on the attack on the Ryazan Refinery. It is reported that FP-1 drones hit the rectification columns of the ELOU-AVT-6 unit with a capacity of 8.5 million tons of oil per year — the largest at the plant — as well as the equipment of the AVT-3 unit with a capacity of 3.1 million tons per year. Together, these facilities account for more than 77% of the primary refining capacity of the Ryazan Refinery, which, according to Washington's logic, directly reduces the volumes of finished fuel on the global market.

Contradictory Data

Here the versions of the sides diverge. On the one hand, official Washington, in the person of Chris Wright, points to "damage to Russian refineries" as the cause of rising prices, without emphasizing who exactly carried out these strikes. On the other hand, according to Fire Point, the damage to the Ryazan Refinery was the result of an attack by Ukrainian FP-1 drones, and a number of Ukrainian business publications note that in the vicinity of US President Trump, Ukraine is directly blamed for the rise in diesel prices in the US. Thus, the same price dynamics is interpreted differently in the public sphere: for the American official it is a "refining problem," while for some politicians it is a consequence of Kyiv's actions.

What the US Administration Is Doing

In response to a question about possible restrictions on diesel exports from the US, Wright stated that the administration is considering various options that could lower prices for American consumers, but is currently focusing primarily on increasing fuel production. Thus, against the backdrop of the record $5.89 per gallon, Washington is for now preferring to stimulate domestic production rather than introduce export restrictions.