Trump Backs Diesel Export Ban Amid Record High Prices

Former President Donald Trump has publicly endorsed a ban on diesel exports, a move he stated he has "called for within my people," amid record-high diesel prices. The national average for diesel reached $6.52 a gallon on Tuesday, according to AAA, marking a near-daily record high for the month. These elevated fuel costs are attributed in part to the ongoing conflict between the United States and Iran, which began earlier this year. The war has disrupted shipping traffic in the Strait of Hormuz, a critical chokepoint for approximately 10% of the world's water-borne diesel. Further exacerbating global supply issues, Ukrainian strikes on Russia have also curtailed the flow of diesel, placing increased pressure on other exporting nations, particularly the United States, to compensate for the shortfall.

Diesel is a foundational fuel for the U.S. economy, powering essential sectors such as trucking, shipping, and agriculture. Consequently, the surge in diesel prices, which have climbed nearly 80% since the conflict with Iran began, is felt across the nation. In September alone, the price per gallon has risen by approximately $1. During the week of September 11, U.S. distillate fuel production exceeded 5 million barrels per day, with about 1.6 million barrels exported abroad, according to data from the U.S. Energy Information Administration. Concurrently, domestic oil reserves have dwindled to their lowest levels recorded since 1882, intensifying concerns about supply availability.

In response to these market conditions, several lawmakers have urged President Trump to implement restrictions on diesel exports, advocating for domestic production to be prioritized for U.S. consumers. Senator Chuck Grassley, a Democrat from Iowa, drew a parallel to government actions on semiconductor exports, stating on X, "If our govt can embargo chips to China it can embargo diesel to help American farmers & truckers." Representative Ashley Hinson, a Republican from Iowa, and Senator John Thune of South Dakota have also expressed interest in exploring such measures. Senator Thune indicated his openness to the idea if it could alleviate price pressures, stating, "If that would take pressure off of prices, I’m open to expl[oring it]." The potential impact of a diesel export ban on global markets and domestic supply remains a subject of ongoing discussion and analysis.