Trump Mulls Diesel Export Restrictions Amid Rising Fuel Prices

President Donald Trump, who campaigned on expanding U.S. energy exports, is now weighing a ban on diesel exports as gasoline and diesel prices climb sharply. The idea has drawn criticism from industry leaders and economists who argue it could reduce refining activity and raise broader fuel costs.

"The hypocrisy here is stunning," said Joe Brusuelas, chief economist at RSM US, adding that free-market supporters are now embracing policies he likens to socialism. An industry source reported that Energy Secretary Chris Wright has reached out to refiners to gauge support for a voluntary export limitation, while a White House official said no formal policy has been announced but that Trump is reviewing options to lower pump prices.

Mike Sommers, president and CEO of the American Petroleum Institute, said restricting diesel exports would be "bad policy" regardless of the administration, echoing former energy secretary Dan Brouillette’s view that the proposal makes little economic sense. Analysts warned that a ban could curtail refinery throughput, potentially driving up prices for gasoline, diesel and jet fuel.

Natasha Kaneva, head of global commodities strategy at JPMorgan, noted that a short-term price drop from a 30-day export ban would likely be offset as refiners exhaust storage capacity and reduce crude runs, reversing any initial relief. She described the U.S. refining system as a strategic asset that could be weakened by such a policy.

Republican Sen. Chuck Grassley has publicly advocated for a diesel export ban, citing the impact of high fuel costs on farmers. However, experts such as Tom Kloza of Gulf Oil and Scott Lincicome of the Cato Institute warned that the measure could exacerbate gasoline price spikes and represent a more severe version of the earlier LNG export pause under the Biden administration.