The Trump administration is currently assessing the viability of imposing a ban on diesel exports to curb record-high domestic fuel costs, according to Treasury Secretary Scott Bessent. Speaking during a bilateral meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the United Nations on Tuesday, Bessent noted that officials are analyzing whether refining capacity can support a full or partial prohibition.
President Trump confirmed that he has advocated for such a restriction during internal deliberations, stating that a decision would be rendered quickly. “I’ve said let’s not send out the diesel. We make a lot of diesel,” Trump told reporters.
The push for restrictions comes as diesel prices in the United States have surged to a record $6.53 per gallon, nearly $3 higher than last year, according to AAA data. Costs are even steeper in California, where diesel averages $8.44 per gallon. Republican lawmakers, including Sen. Chuck Grassley of Iowa, have urged the administration to act as farmers and truckers face financial strain ahead of the November midterm elections.
Global supply disruptions have driven prices upward. Conflicts in Eastern Europe and the Middle East have severely reduced refining capacity. Ukraine’s strikes on Russian refineries prompted Moscow to ban its own diesel exports, while Iranian threats and attacks by Houthi allies have constrained product shipments through the Strait of Hormuz.
Industry groups have pushed back against potential restrictions. The American Petroleum Institute warned that limiting U.S. energy exports would exacerbate refining challenges and harm consumers. API CEO Mike Sommers emphasized that the solution lies in increasing supply and flexibility rather than adding new constraints.
U.S. refiners have recently ramped up diesel exports to capitalize on high global demand, with diesel trading at approximately $207 per barrel on Tuesday—more than $100 above crude oil prices. Higher fuel costs are expected to impact the broader economy, raising prices for grocery goods and consumer products due to diesel’s essential role in transportation and agriculture.
Lol, a Republican administration actually protecting domestic workers for once? I’ll believe it when I see a lower pump price.
Seems counterintuitive to punish refiners for selling at a $100 premium globally. Won’t this just shrink supply here?
My brother farms in Iowa. He says this could bankrupt half the state before harvest.
Six dollars a gallon is killing me. If banning exports doesn’t lower prices, what will?