US diesel prices hit record as Trump weighs export ban

Key facts

• The average U.S. retail diesel price hit a record $6.52 per gallon on September 22.
• President Donald Trump said he would back proposals to halt American diesel exports.
• Former Energy Secretary Dan Brouillette warned that a diesel export ban would make little economic sense and could raise gasoline prices.
• Current Energy Secretary Chris Wright stated that banning diesel exports is not an effective tool.
• Treasury Secretary Scott Bessent confirmed the administration is examining the feasibility of a full or partial export ban.
• Global diesel supplies are constrained by conflicts in the Middle East and Ukraine, and by refinery capacity shortages in the U.S. and Europe.

Diesel prices in the U.S. continue to climb, reaching a record $6.52 per gallon on September 22, a situation exacerbated by global supply constraints and domestic refinery capacity shortages. President Donald Trump has indicated support for a ban on U.S. diesel exports to alleviate high prices for consumers.

However, former Energy Secretary Dan Brouillette warned that such a ban would be a "bad idea" that makes "very little economic sense." He explained that diesel and gasoline come from the same crude oil barrel, so restricting diesel refining would also constrain gasoline production, potentially raising prices for both fuels. Current Energy Secretary Chris Wright also expressed skepticism, calling an export ban a "blunt tool."

While blocking U.S. diesel exports could offer short-term price relief, especially along the Gulf Coast and Midwest, Brouillette cautioned that excess fuel might be trapped due to insufficient pipeline infrastructure to reach other regions. In the longer term, he warned that an export ban could negatively impact foreign investment in U.S. refining infrastructure, undermining efforts to increase capacity.

Treasury Secretary Scott Bessent confirmed that the administration is "examining" the feasibility of a full or partial export ban. The push for restrictions comes as Republicans pressure the administration ahead of mid-term elections, with some lawmakers highlighting the financial strain on voters. Global diesel supply has been squeezed by conflicts in the Middle East and Ukraine, as well as reduced refining capacity in Russia due to Ukrainian targeting of energy facilities.