President Donald Trump announced Tuesday that he supports a temporary ban on U.S. diesel exports to combat soaring fuel costs. Speaking on the sidelines of the United Nations General Assembly in New York during a meeting with Ukrainian President Volodymyr Zelensky, Trump stated, I’ve called for that, too. I said, ‘Let’s not send out the diesel.’ We make a lot of diesel
.
Trump Considers Diesel Export Ban Amid Record Fuel Prices
The president indicated that a decision on the matter would be made fast, one way or the other
. Trump suggested that restricting diesel exports could also have a little bit of an effect on regular automobile gasoline
due to the balance of fuel flows. While Trump claimed he has previously advocated for the measure within his administration, he declined to commit to a specific timeline for any ban.
U.S. Treasury Secretary Scott Bessent confirmed the administration is studying the proposal. Bessent stated that officials are examining whether it’s feasible in terms of the overall refining capacity and whether a full or partial ban would work
.
Economic Pressure and Midterm Politics
The proposal comes as diesel prices hit record highs, reaching $6.52 per gallon according to AAA, with some reports citing $6.53. In California, prices have reached $8.44 per gallon. These costs represent a significant increase from the previous year, when prices were $3.68. For comparison, the average price of regular gasoline currently stands at $4.47, up from $2.98 before the start of the war in Iran on Feb. 28.
The price surge is attributed to global supply crunches caused by wars in Ukraine and Iran. These conflicts have reduced global refining capacity through attacks on Russian refineries and Middle Eastern facilities by Iran and its Houthi allies, as well as threats to tankers in the Strait of Hormuz. These conditions have pushed diesel to approximately $207 a barrel, more than $100 above the price of crude oil.
With midterm elections scheduled for November 3, fuel prices have become a political liability for Republicans. Several candidates in competitive races have urged the administration to act:
- Senator Dan Sullivan (Alaska): Called for a temporary pause to rebuild reserves before winter.
- Representative Ashley Hinson (Iowa): Called for a diesel export ban in recent days.
- Mike Rogers (Michigan): Urged a temporary embargo to put downward pressure on prices for truckers and farmers.
- Senator Chuck Grassley (Iowa): Called for an export ban to assist farmers.
High diesel costs impact the U.S. supply chain, as the fuel powers the trains and trucks used to deliver goods and the equipment used to harvest crops. This has resulted in increased grocery bills and higher costs for consumer products. Agriculture Secretary Brooke Rollins recently told the president that high prices are a real concern
, following a request from the U.S. Department of Agriculture for the White House to take action.
Industry and Government Opposition
Despite the president’s support, several energy officials and industry leaders warn that a ban could be counterproductive. U.S.
The American Petroleum Institute (API) expressed strong opposition. API CEO and president Mike Sommers stated that restricting exports would only compound the problem—exacerbating refining challenges and ultimately hurting consumers
.
Other experts and trade groups have raised the following concerns:
- Domestic Production: Economist Joseph Brusuelas noted that the U.S. produces 5.3 million barrels per day, exceeding the domestic demand of 3.6 million. He warned that a ban could create a short-term surplus that forces discounts, potentially leading firms to cut production and eventually drive prices higher.
- Global Pricing: Patrick De Haan of GasBuddy argued that because diesel is a globally traded commodity, an executive order cannot
fence off
the market or change the world price that determines U.S. costs.
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