U.S. Diesel Export Ban Considered
Trump Weighs U.S. Diesel Export Ban as Fuel Prices Surge Ahead of Midterms
Anonymous
President Donald Trump says he is seriously considering a U.S. diesel export ban as fuel prices climb ahead of the November midterm elections, but no decision has been made. Diesel is about $6.45–$6.50 a gallon, with supplies disrupted by conflicts in the Middle East and Russia. Energy Secretary Chris Wright favors voluntary export limits over a sweeping ban, while the administration is also weighing suspending the federal diesel tax and involving states. Analysts say a ban could temporarily lower diesel prices in some U.S. regions but raise prices abroad and potentially push up U.S. gasoline prices as refinery operations adjust. Economists and energy-industry voices warn that export restrictions would not quickly resolve the global diesel shortage and could worsen broader fuel-price pressures.
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Goldman Sachs analysts estimated that a ban could initially reduce diesel prices by about 25 cents per gallon per week while storage capacity remains available. Once storage nears capacity, diesel production could fall, potentially pushing gasoline prices higher.
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Oxford Economics estimated that a ban could cut prices by roughly 30% within weeks in some U.S. regions, while potentially raising European wholesale prices by 40%–50%.
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Politico reported that the administration was preparing a plan for a 90-day diesel export ban, though the White House had not announced a policy decision.
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Sen. Dan Sullivan of Alaska urged the administration to keep domestic fuel at home, saying, “American fuel should stay home with Americans. The cost of diesel is just too damn high.”
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