Key facts
- Some Republicans are calling for a ban on US diesel exports to combat record-high prices.
- Diesel prices have surged 83% this year, reaching over $6.50 a gallon.
- Factors contributing to high diesel prices include the Iran war, Ukrainian drone strikes on Russian refineries, and export restrictions by Russia and China.
- Experts warn that a US diesel export ban could offer only a temporary price reduction and lead to higher gasoline prices, harm US refiners, and damage the US's reputation.
- A White House official said the administration is not considering an export ban.
Republican lawmakers and officials are urging President Donald Trump to consider banning US diesel exports as a measure to combat record-high prices that are impacting farmers and consumers. Senator Chuck Grassley and Representative Tim Burchett have publicly advocated for such restrictions, with Louisiana Governor Jeff Landry calling for a 90-day ban.
However, energy experts and researchers warn that a US diesel export ban could be a flawed policy with significant negative repercussions. Bob McNally, president of Rapidan Energy Group and a former energy official, described such a move as a "sledgehammer" approach that would likely be an "APE" – an authentic policy error. He suggested that while prices might initially drop in regions like the Gulf Coast and Midwest due to trapped supply, coastal areas reliant on imports could face price hikes. Furthermore, global diesel prices could skyrocket, affecting US customers in Europe and Latin America.
The surge in diesel prices is attributed to a confluence of factors, including supply disruptions from the Iran war, Russian refinery damage from Ukrainian drone strikes, and export restrictions imposed by Russia and China. The price of diesel, crucial for powering trucks, trains, tractors, and ships, exceeded $6.50 a gallon over the weekend for the first time on record, marking an 83% increase year-to-date.
A White House official stated that the administration is not currently considering an export ban. Interior Secretary Doug Burgum expressed skepticism about the effectiveness of such a ban, warning it could "actually hurt Americans" in import-dependent areas.