Diesel prices just hit a new record. Would a U.S. export ban bring relief?
Some lawmakers want to halt U.S. diesel exports as prices top $6.50 a gallon. But such a ban could have unintended consequences, experts say.
Record-high diesel prices, soaring 77% from a year ago, have prompted some Republican lawmakers to propose a ban on U.S. diesel exports. However, energy experts warn that such a move could have unintended consequences, potentially driving prices even higher. Diesel is crucial for agriculture, trucking, and construction, and the price surge is particularly burdensome for farmers and small businesses.
Many lawmakers in agriculturally rich states have called for such a ban, arguing it could lower prices for Americans. However, experts argue that the U.S. exports diesel because refineries produce more than the country consumes, and global supply disruptions caused by conflicts in Iran and Ukraine have pushed prices up. Blocking U.S. exports could worsen the global shortage, exacerbating price increases.
Instead, experts suggest extending an existing waiver of the Jones Act, which would allow for cheaper fuel, or temporarily waiving a federal rule requiring the sale of renewable fuel.
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