Mikie Sherrill urges port operators to turn away Russian diesel

Mikie Sherrill urges port operators to turn away Russian diesel

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Diesel at the pump is averaging $6.29 per gallon nationwide as of Tuesday morning, down from $6.50 just weeks ago, yet New Jersey Governor Mikie Sherrill is warning that Russian fuel shipments now steaming toward the U.S. East Coast will not be unloaded in her state. OilPrice.com reported that Sherrill sent a letter Monday to port and terminal operators urging them to turn away tankers carrying Russian diesel, cautioning that the state would use its legal and regulatory powers to prevent the shipments from entering through New Jersey and that operators risk civil and criminal penalties.

The governor’s warning lands squarely against President Trump’s early-October announcement of a deal with Russian President Vladimir Putin to allow Russian diesel imports into the United States. The administration authorized the shipments to help ease high industrial fuel prices during a severe global refining squeeze fueled by Ukrainian drone attacks on Russian refineries and disruptions in the Strait of Hormuz. For trucking companies, farmers, and manufacturers watching every cent at the pump, the promise of cheaper imported diesel has been one of the few bright spots in an otherwise brutal stretch at the gas station.

N.J. Gov. Sherrill issues warning about Russian diesel

Sherrill challenged the legal foundation of that waiver, writing that the Russian Oil Act does not grant the President or the Treasury Department blanket authority to waive these sanctions through licenses.

“Russia has since dispatched multiple diesel oil tankers to the United States, including at least one that may be headed for the New Jersey coast,” New Jersey.Sherrill

she said, urging operators to refuse to purchase or unload what she called illegal Russian fuel.

“Any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties.”

she concluded.

Industry Skepticism on Whether Russian Supply Can Move the Needle

Even as the political fight heats up, energy executives are questioning whether the Russian diesel will actually do much to dent the global shortage. Brian Mandell, executive vice president of marketing and commercial at Phillips 66, told analysts on a recent earnings call that the volumes simply aren’t there to change the market picture.

“We don’t think Russia has enough distillate to make much of a difference, to be quite frank.”

Mandell said, adding,

“That’s a drop in the bucket compared to how much distillate is offline.”

With diesel still hovering above $6 a gallon nationwide, the White House is betting that even modest Russian barrels can cool prices at the pump. Sherrill’s letter signals that at least one major Democratic governor intends to make that bet as difficult as legally possible, setting up a direct confrontation between state port authorities and federal sanctions policy just as tankers begin arriving.

The next test will come as those tankers approach the New Jersey coast, where port operators must now weigh federal authorization against the governor’s threat of harsh penalties.

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