White House Weighs Red-Dyed Diesel Relief as Fuel Prices Soar
US Distillate Stocks Continue to Fall As Crude Inventories Build The U.S.
federal government has come up with an alternative to a diesel fuel export ban that could alleviate the price pain at the pump by boosting the availability of a tax-free sort of diesel.
That’s according to unnamed sources quoted by Reuters this week.
It is unclear if the idea is a replacement for the ban or will complement it, should a ban be approved.
The fuel in question is red-dyed diesel, which is used in agriculture and construction, among other industries.
Also called off-road diesel, the fuel is literally dyed red to distinguish it from the diesel sold for broad use.
The red-dyed fuel is not subject to the federal excise duty and, as such, is cheaper than its broad-use version.
Diesel prices have emerged as a point of acute pain for Americans, hitting record highs earlier this month as the war between the United States and Israel with Iran entered its seventh month with no prospect of a swift resolution.
As oil and fuel exports out of the Persian Gulf remain constrained, U.S.
refiners ramped up processing rates to fill as much of the resulting supply gap as possible.
Exports of both crude oil and fuels surged, especially to Europe, which lacks sufficient local refining capacity.
The surge in exports also contributed to the fuel price inflation at home - and the recent rush by the federal government to bring prices down.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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