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Depleting stocks US exports to the hilt 14.2 million barrels of crude oil and products such as diesel and gasoline a day to Asia and Europe- May 2026. This is the highest ever exports from the US of oil and oil products. Australia gets 2.7 million barrels a day in March when exports before were sporadic. UK, France, Netherlands, all need US oil. Not only Gulf ports, ports of Philadelphia, New York and Albany are also being used by sending oil from the south up the Colonial Pipeline to the East.

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Prices of gasoline expected to peak at about $4.31 a gallon, while its much higher for diesel that powers trucks on the road at $5.80 in April 2026, according to Energy Information Administration. Diesel is produced mostly in Persian Gulf as the oil in the US is mostly suited for making gasoline and Gulf oil better suited for making diesel. Supplies were tight before Iran War already, while gasoline supplies are not tight. This is why diesel (and jet fuel) costs a lot more than gasoline in 2026.

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Under a landmark ruling by a federal court in Leipzig, German cities can now ban older diesel engine vehicles. The cities of Stuttgart and Dusseldorf are allowed to legally ban older higher polluting diesel cars from zones that are badly affected by air pollution. Environmental group DUH brought the lawsuit after 70 German cities exceeded European Union limits for nitrogen oxides (NOx) in 2017. NOx emissions can cause respiratory disease and difficulty breathing. Diesel engines produce high levels of nitrogen oxide, and low levels of carbon dioxide. EU air quality standards are not being met in cities across Europe, so that this could set a precedent for Europe, says the BBC. Of the 15 million diesel cars on German roads only 2.7 million meet the latest Euro-6 standards, according to German automotive watchdog agency. Diesel car market share is dropping- falling to 39% in 2017 from 48% in 2015. The VW diesel emissions scandal in 2015 further eroded public confidence. The German government already has suggested alternatives such as offering free public transport in cities with poor air quality. The government opposed the ruling because it did not want the car industry to bear the additional cost of retrofitting older vehicles at a time when German carmakers were investing in electric vehicles.  Yet the trend is clear. Paris, Madrid, Mexico City, Athens have pledged to ban diesel vehicles from the centre of cities by 2025, with Copenhagen doing this in 2019. ...

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US diesel supplies are tight in the northeast with prices up 37% in recent months. The Biden administration is preparing for the release of 1 million barrels of diesel in the northeast using the Northeast Home Heating Oil Reserve.

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Mercedes plans to introduce its Green Diesels in Japan. The penetration of diesel automobiles is expected to go up to 11%. This is well above the high of 6% achieved in the nineties, which later slipped becuase of strict emissions regulations and the perception that diesels were dirty with poor engine performance. German diesel technology has improved to the point where the performance and emissions have improved significantly. The quality of diesel fuel in Japan has improved and the new cleaner diesels provide an attractive option to Japanese car buyers.

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The Federal Administrative Court in Leipzig, Germany, ruled in an appeal of a lower court decision, that German cities Stuttgart and Dusseldorf could ban diesel vehicles from urban traffic to reduce air pollution. Diesel vehicle technology of German manufacturers took a hit with the VW emissions cheating scandal. This ruling now puts pressure on the next German government to force car makers to take on estimated 8 billion euros in costs to refit older diesel vehicles to reduce pollution. Another option for government is to push this cost onto taxpayers, not a popular move. A longer term trend is also underway now that diesel fumes are seen as being more damaging to health than previously thought. Cars made up half of cars sold in Europe before the 2015 VW diesel emissions scandal when VW misrepresented the real amount of emissions taking place. This has dropped now to 44%, and is now more concentrated in delivery vehicles, craftsmen vehicles, according to analysts. This is expected to drop to 20% by 2025. The Leipzig ruling accelerates the decline of the diesel engine in Europe. As the Leipzig ruling is at the federal level the Environmental Action Germany which setup the lawsuit says the first diesel bans could go into effect in 3-6 months.    ...

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This Perspectives piece in the DW.com says the German government has little option but to support the federal Leipzig court ruling in favor of banning diesel cars in cities with high pollution levels. It says the best days of diesel engine cars are over in Germany and in Europe. The downward trend after the VW diesel emissions scandal affected public confidence, the pressure from the European Union with the strict Euro 66 standards and the failure of many German cities to meet the EU nitrogen oxide standards, and this ruling by the courts, all mean says DW.com that the best days of diesel are over.

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The new diesel Jetta from Volkswagen is gointo into all 50 states and meets the ultra strict standards for emissions of California. The same is true of the European diesel Honda Accord that is coming to the USA, and the BMW 335i and other models that all run on diesel. The economics is better than gasoline per mile its 15-20% cheaper and compared to hybrids diesels offer a better deal because the premium is less and the payback period for the extra cost is faster, in the case of the MercedesE320 Bluetec diesel $1400 and 2 year payback, vs the Camry hybrid premium of $3800 and with gas at $3 per gallon 3 to 8 years for payback. And hybrids only offer buel economy but diesel offers both fuel economy and performance like the BMW 335i with 265 hp and 33mpg on highway. Because of this new attractiveness of diesel its share of the market is expected to grow to 15% in 2015 in the USA from 6% now and hybrids are expected to go from 2.2% today to 6% by then.

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Pakistan economy coping with Iran war- 20% increase in prices of fuel ,schools closing for 2 weeks, 4 day workweek. Farmers fearing increase in fuel costs for diesel to run tractors and agricultural machines.  About 37% of people are employed in agriculture.

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European carmakers likeMercedes Benz's efforts to promote sale of diesel cars in the USA is suffering from the high prices of diesel and the widening spread between diesel and gasoline prices.

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Diesel cars at the Frankfurt Auto Show.