Trump says he’s called for a ban on diesel exports

Record Diesel Prices and the Push for an Export Ban

Diesel prices in the United States have surged to an all-time record of $6.52 per gallon, according to AAA data. That figure marks a staggering 77% increase compared to the same period last year. The sudden spike stems primarily from global supply chain crunches driven by ongoing military conflicts in Iran and Ukraine, which have disrupted shipments through vital waterways like the Strait of Hormuz and halted seaborne diesel exports from Russia.

Speaking on the sidelines of the U.N. General Assembly in New York, President Trump told reporters that he has urged his advisers to implement export restrictions. I've said let's not send out the diesel, Trump said alongside Ukrainian President Volodymyr Zelenskyy. We make a lot of diesel. That could have a little bit of an effect on regular automobile gasoline, but when you do that, you know, it's a sort of a flow, it's a balance.

“I’ve said let’s not send out the diesel. We make a lot of diesel … I’ve called for it. I’ve called for it within my people.”

President Donald Trump, speaking at the United Nations

Treasury Secretary Scott Bessent, participating in the same meeting, told reporters that the administration is actively reviewing the proposal. We're examining whether it's feasible in terms of the overall refining capacity and whether a full or partial ban would work, Bessent stated. Trump added that his administration would make a decision on the matter fast, one way or the other.

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Political Pressures Ahead of the Midterm Elections

Agricultural states have been hit hardest by the diesel squeeze, prompting key lawmakers to demand immediate federal intervention to protect farmers and transport operators.

Iowa Republican Senator Chuck Grassley posted on social media calling for an embargo on diesel exports to lower domestic costs, noting that high fuel prices are killing farmers' income. Representative Ashley Hinson, a Republican running in a competitive Senate race in Iowa, similarly urged the administration to use every option at our disposal to provide some relief from high prices. Other vulnerable incumbents, including Republican Senate candidates Sen. Dan Sullivan in Alaska and Rep. Mike Rogers in Michigan, have faced mounting constituent pressure over utility and travel expenses.

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Industry Warnings and Economic Tradeoffs

Energy industry executives and market analysts have strongly cautioned against an export ban, warning that restricting shipments abroad will likely backfire after providing only short-term relief. Mike Sommers, president of the American Petroleum Institute, argued that restricting U.S. energy exports would compound the problem by exacerbating refining challenges and ultimately hurting consumers.

“U.S. diesel prices are determined not by a U.S. supply and demand balance, but a global one. Keeping distillates and diesel [at] home does not change the world price that reference our prices. You can’t fence off a globally traded commodity by executive order and expect the global price to stop applying to it.”

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Patrick De Haan, head of petroleum analysis for GasBuddy

Economists and Federal Reserve analysts also point out logistical hurdles. Garrett Golding, assistant vice president for energy programs at the Federal Reserve Bank of Dallas, explained that while a ban might initially lower wholesale prices in domestic hubs like the Gulf Coast, refineries that can no longer export will quickly run out of storage space and be forced to cut back production rates. Economist Joseph Brusuelas added that a temporary domestic surplus would force fuel sales at a discount, discouraging long-term production and ultimately sending consumer prices back upward.