U.S. News: Trump Weighs Ban On Diesel Exports

 

 

“President Trump said Tuesday he is considering restricting diesel exports in an effort to curb soaring fuel prices, an idea that is quickly gaining traction with more Republicans ahead of the midterms.

 

"I've called for that, too. I said, 'Let's not send out the diesel.' We make a lot of diesel. I've called for it -- I've called for it with my people," Trump told reporters during a meeting with Ukrainian President Volodymyr Zelensky on the sidelines of the United Nations General Assembly in New York.

 

Treasury Secretary Scott Bessent said the U.S. is "examining" a diesel export ban and "whether it's feasible in the overall refining capacity and whether a full or partial ban would work."

 

Trump said the decision would be coming "fast, one way or the other."

 

An export ban on diesel used in trucks and farm machinery has gained support with some farm state Republicans who are facing tough elections, including Senate candidates in Iowa, Michigan and Alaska.

 

In the U.S., diesel prices have vaulted to records in the wake of the missile strikes that have crippled fuel-making facilities in the Middle East and Russia. The national average for a gallon of diesel reached $6.53 Tuesday, up nearly a dollar over the past month, according to Dow Jones Energy.

 

The U.S. produces more fuel than it consumes, and refiners have historically shipped large amounts abroad to chase higher prices.

 

Commercial diesel inventories in the U.S. have dropped 11% since the start of the war with Iran, while exports are up 31% on a weekly basis, according to the Energy Information Administration.

 

Speculation has swirled for weeks that Trump officials would consider a temporary ban on some fuel exports, but the administration repeatedly denied it would resort to that measure. The oil industry is strongly opposed to any export ban, given U.S. fuel makers are likely to lose the trust of some overseas buyers and lose money.

 

Trump's openness to potential restrictions is sure to send the industry scrambling. Industry lobbyists who had checked in with the administration in recent weeks had felt that there was no appetite to enact a ban, according to people familiar with the matter.

 

Energy Secretary Chris Wright, Interior Secretary Doug Burgum and Jarrod Agen, the executive director of the National Energy Dominance Council, have all opposed the idea, according to an administration official.

 

"We understand the administration is looking at every option to deliver relief, but restricting U.S. energy exports would only compound the problem," said Mike Sommers, chief executive of the American Petroleum Institute. "The answer is more supply and more flexibility -- not new restrictions that risk making a difficult situation worse."

 

Analysts at investment bank TD Cowen said an export ban could take the form of a temporary export quota. Exports have been some 300,000 barrels a day higher than the historical average, and the U.S. could limit exports to these levels -- with inventories likely returning to full levels in a few months, they said.

 

Analysts caution an export ban could backfire longer term. Domestic refineries would likely opt to process less crude since they will have lost a slew of overseas customers. In that scenario, they would make less gasoline and jet fuel as well, leading to higher prices.

 

"If an export ban creates a spontaneous glut, it would likely drive prices down -- but maybe not for long," said Kevin Book, an analyst at energy-research firm ClearView Energy Partners. "When it comes to this sort of intervention, economics says it's a bad idea in the long run. But in politics, there is no long run."

 

Another complication is that some regions of the U.S., such as the Northeast, import diesel. If refiners limited shipments abroad, prices would rise globally, and the Northeast would pay even more.” [1]

 

As results of American diesel export reduction, prices of diesel in the rest of the world would go up. Since Lithuanians are driving mostly diesel cars, our driving would become more expensive. We would be paying more for transportation of goods too.

 

1. U.S. News: Trump Weighs Ban On Diesel Exports. McGraw, Meridith; Eaton, Collin.  Wall Street Journal, Eastern edition; New York, N.Y.. 23 Sep 2026: A2.