<p>Energy Secretary Chris Wright stated that the Russia-Ukraine war is the "single biggest factor" behind the historic increase in diesel prices.</p>
<p>“Diesel has been impacted by a lot of factors, but the single biggest one there has been the Ukrainian destruction of Russian refineries,” Wright said during an appearance on CNN’s State of the Union on Sunday morning.</p>
<p>Wright noted that Russia was a significant exporter of diesel for several decades, but has since banned any exports of diesel. He added that China has also reduced its diesel exports, and Russia is now importing gasoline, a shift from its previous status as a net exporter. This has led to a tighter refining market.</p>
<p>His comments coincided with peace talks in Moscow involving special envoys from former President Donald Trump, Steve Witkoff and Jared Kushner, who also met with Ukrainian President Volodymyr Zelensky in Kyiv. No breakthroughs were reported from these discussions as the conflict between Russia and Ukraine continues.</p>
<p>Wright mentioned that the ongoing conflict in Iran is also contributing to rising gasoline and diesel prices, but he focused primarily on the impacts of the Ukraine war during his interview. He criticized the Biden administration for closing over a dozen refineries in the United States, and mentioned that California Governor Gavin Newsom had closed two significant refineries in the past year. He stated that the Trump administration is working with refiners to expand their capacity.</p>
<p>Wright referenced his recent visit to Venezuela, highlighting efforts to increase oil production and refinery capacity to support the global oil market. He noted that the United States facilitated deals between the Venezuelan government and five energy companies, including Chevron, separate from a major U.S.-Venezuela oil deal announced shortly before his visit.</p>
<p>“On Venezuela, I think things are going swimmingly, well above our projections,” Wright told CNN. He reported a 25% increase in Venezuela's national oil production and a 50% increase in oil exports, stating that progress is occurring rapidly.</p>
<p>As of Sunday, the national average gas price was reported at $4.15, with the average for diesel at $5.90. These prices are expected to surpass the record set by Labor Day 2012, which was $3.82 per gallon.</p>
<p>Gas prices typically decrease after Labor Day due to seasonal demand, but high costs may persist due to geopolitical tensions, particularly related to the U.S.-Iran conflict over the Strait of Hormuz.</p>
<p>When asked if gas prices could rise significantly more, Wright refrained from offering an opinion but suggested that gasoline production is set to increase while demand is expected to decrease, indicating that prices are more likely to go down.</p>