From TIME · Chad de Guzman · · 2m
Trump eyes diesel export ban to ease pump prices
As fuel costs hit record highs, the White House considers restricting exports to help American consumers, but analysts warn the fix could backfire.
In brief
As fuel costs hit record highs, the White House considers restricting exports to help American consumers, but analysts warn the fix could backfire. A diesel export ban might lower prices temporarily in some regions but could raise them elsewhere and reduce overall refining capacity, making the problem worse globally…
Diesel prices hit record highs
Diesel averaged $6.53 per gallon on Tuesday, up 90 cents from last month and nearly double the $3.75 price before the Iran war disrupted global energy supplies.
Trump proposes diesel export ban
President Trump said stopping diesel exports could lower gasoline prices, echoing calls from Republican lawmakers representing farm states hit hard by rising fuel costs.
“I've said let's not send out the diesel, we make a lot of diesel.”
Farmers and rural lawmakers push hard
Senator Chuck Grassley of Iowa posted that high diesel prices are killing farmers' income, while Senator Dan Sullivan of Alaska called for an export moratorium until the Iran conflict ends.
“High diesel prices ARE KILLING FARMERS INCOME.”
Administration weighs feasibility
Treasury Secretary Scott Bessent said the administration is examining whether a diesel export ban is feasible given refining capacity, while Energy Secretary Chris Wright expressed skepticism about the approach.
U.S. dominates global diesel trade
American refineries produce 5.3 million barrels of diesel daily, with exports of about 1.5 million barrels, nearly a fifth of the roughly 8 million barrels traded globally each day.
Ban could backfire on coasts
Atlantic Council analysts warn that while a ban might lower prices in the Gulf Coast and Midwest, it could raise prices on the West Coast and East Coast, plus increase grocery prices.
“would likely create more problems than it would solve.”
Refining capacity would shrink
A ban would force refineries to reduce production rates, cutting output of gasoline, jet fuel, and other products, ultimately raising prices across the board.
Oil industry opposes the ban
The American Petroleum Institute argues that restricting exports would worsen refining challenges and hurt consumers, calling it a counterproductive approach to the crisis.
“restricting U.S. energy exports would only compound the problem”
Oil state senators split on ban
Senator John Cornyn of Texas called the ban a gimmick, while Senator Lisa Murkowski of Alaska worried it won't address global supply issues. Senator Mike Rounds of South Dakota prefers restarting closed refineries.
“a politically popular 'quick fix' may prove difficult to resist.”
Politics drives energy decisions
With midterm elections approaching and voters unhappy about inflation, Republicans are under pressure to show they're solving the cost-of-living crisis, even with questionable solutions.
The key point
A diesel export ban might lower prices temporarily in some regions but could raise them elsewhere and reduce overall refining capacity, making the problem worse globally.
