White House weighs alternatives to diesel export ban amid record prices
President Trump said a diesel export ban is under serious consideration, while the administration also reviews voluntary limits, tax suspensions and state actions to address high diesel costs.
President Donald Trump told Fox News on Sunday that he is "thinking very seriously" about imposing a ban on diesel exports, acknowledging that such a measure could raise gasoline prices. The comment follows a previous statement in which he said he had "called for" an export ban, indicating a more cautious stance.
White House officials said no final decision has been made and that the president is reviewing all options. Among the alternatives being discussed are a voluntary curtailment of diesel shipments, a suspension of the federal diesel excise tax, and encouraging states to take independent steps.
Energy Secretary Chris Wright said the administration is working with refiners on a voluntary export limit, noting a desire to avoid a "blunt hammer" of government policy. The American Petroleum Institute warned that a blanket ban would "only compound the problem" and called for more supply and flexibility.
State-level actions include Nebraska’s 90-day suspension of diesel taxes for agricultural vehicles and Alabama’s 120-day pause in enforcement of tax-exempt diesel rules, measures aimed at easing costs for farmers and consumers.
Economists caution that a full export ban could provide short-term price relief in some U.S. regions but would likely raise diesel prices abroad, potentially increasing European wholesale rates by 40-50 percent. They also note that reduced refinery output could limit any domestic benefit.
The discussion comes as diesel prices averaged $6.45 per gallon, slightly down from a recent record high, and as the 2024 midterm elections approach, with Republican lawmakers in farm states pressing for action.