Oil lobby warns Trump-considered diesel export ban could lift fuel prices
Industry groups and analysts say a U.S. diesel export ban would temporarily lower prices in some regions but soon raise gasoline and diesel costs nationwide, while the White House weighs the proposal amid political pressure.
President Donald Trump has signaled support for restricting diesel exports as fuel prices climb ahead of the November midterm elections. The American Petroleum Institute (API) quickly countered, with CEO Mike Sommers stating that limiting U.S. energy exports would worsen refining challenges and hurt consumers, and emphasizing that “more supply and more flexibility” are needed.
Energy Secretary Chris Wright told reporters the administration is evaluating restrictions rather than an outright ban, noting that a blunt policy could reduce refinery output and push gasoline prices higher. Wright warned that barriers on fuel flows would quickly cut production and shrink supply.
Industry analysts estimate a diesel export ban could add about 30 cents per gallon to fuel costs, with gasoline prices potentially reaching record levels. Rapidan Energy president Bob McNally said any short-term price relief would be limited to the Gulf Coast and lower Midwest, while the Northeast, which relies heavily on imports, would see little benefit. He warned that after an initial dip, prices would rise above current levels as refiners scale back output, and that global prices could “soar.”
The proposal also raises trade-policy concerns, as the United States is a major diesel supplier to Europe, and a ban could provoke retaliatory measures such as European restrictions on gasoline exports to the U.S.
Republican lawmakers, including Sen. Chuck Grassley, have urged an embargo to help farmers facing high diesel costs, which have risen to $6.52 per gallon, nearly $3 above last year’s average. Treasury Secretary Scott Bessent said the White House is reviewing the feasibility of a full or partial ban in light of overall refining capacity. A White House official indicated that President Trump wants lower pump prices and is reviewing all options.
The debate comes as Russia’s own diesel export ban, imposed after attacks on its refineries, has already tightened global supplies, removing the world’s second-largest diesel source.