The regulatory shift follows a summer ban on Russian diesel exports that removed approximately 750k bpd from international markets after Ukrainian drone strikes hit Russian refineries. This shortfall, alongside disruptions from the Iran Crisis, has driven US diesel cracks to record levels. Although Abbott is seeking a waiver for ultra-low sulfur standards, total US output of 15-500ppm sulfur diesel is only 119k bpd, with 105k bpd produced in Texas for export or marine blending.
Tuesday, October 20, 2026
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Abbott Declares Texas Disaster to Lower Diesel Prices
Commodities22 days ago
Governor Greg Abbott issued an emergency decree on Monday that expanded weight limits for specific trucking shipments to help reduce transport costs during a period of extreme supply volatility. The governor's declaration of a statewide disaster allows the general public to use tax-free dyed diesel on public roads and authorizes the state to suspend various federal diesel emission rules. While these measures aim to curb retail costs, the use of fuel with higher sulfur content may damage engines in newer vehicles.
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