The U.S. government says that it is considering banning all exports of diesel as the fuel’s price sits at a record high.
U.S. Treasury Secretary Scott Bessent said the government is considering a full ban on diesel exports, and U.S. President Donald Trump said he supports such a move.
The Trump administration is trying to determine if a diesel export ban will ease record high prices for the fuel that’s used by airlines, trucking companies, and in agriculture equipment.
The ban is being considered as diesel prices in the U.S. surge to a record high of $6.53 U.S. per gallon, almost $3 U.S. higher than this time last year, according to data from AAA.
In some states, the cost of diesel is even higher currently. In California, for example, diesel costs $8.44 U.S. per gallon right now.
Prices for diesel have risen sharply as the wars in Iran and Ukraine disrupt global refining capacity and available supplies.
Ukraine’s attacks on Russian refineries in recent months have forced the government in Moscow to implement a diesel export ban.
Refineries in the Middle East have come under attack from Iran and its Houthi allies, driving up costs for diesel fuel.
Diesel was trading at $207 U.S. a barrel on Sept. 22, more than $100 U.S. above the current price of crude oil.
Economists say higher diesel prices trickle down to consumers in the form of higher grocery bills and what they pay for consumer products.
But while the Trump administration is touting an export ban as a way to lower diesel’s price, the industry does not support such a maneuver.
The American Petroleum Institute lobby group has warned that “restricting U.S. energy exports would only compound the problem—exacerbating refining challenges and ultimately hurting consumers.”
In a statement, the American Petroleum Institute said: “The answer is more supply and more flexibility—not new restrictions that risk making a difficult situation worse.”
