Key facts
- The national average diesel price reached a record $6.52 per gallon.
- Global refining capacity is constrained due to disruptions in the Middle East and Russia.
- Russia has banned diesel exports until at least the end of October.
- U.S. industry groups warned that a diesel export ban would reduce fuel production and increase prices.
- Energy Secretary Chris Wright stated that a ban would force reductions in U.S. refining.
- President Donald Trump and Treasury Secretary Scott Bessent had previously hinted at the possibility of a diesel export ban.
Diesel prices have surged to a record nominal high of $6.52 per gallon in the U.S., driven by global refining shortages rather than high crude oil costs. Disruptions in the Middle East, including Iranian strikes on refineries, and Ukrainian drone attacks on Russian refineries have significantly reduced global diesel supply. Russia has also banned diesel exports until at least the end of October.
Amid these tight market conditions, the Trump administration has sent mixed signals regarding a potential ban on U.S. diesel exports. While President Donald Trump and Treasury Secretary Scott Bessent had hinted at the possibility, the White House later denied that a ban was in the works. Energy Secretary Chris Wright explicitly ruled out such a measure, warning that it would force reductions in U.S. refining capacity, leading to higher prices for gasoline and jet fuel, and undermine the nation's energy influence.
U.S. energy and manufacturing industries have strongly opposed any export restrictions. Industry groups, including the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers, argued in a letter to President Trump that an export ban would decrease fuel production, tighten supplies, and increase costs for American consumers, farmers, and truckers. They also warned of potential retaliatory actions from other countries and a loss of U.S. status as a reliable supplier.