Trump is backing a diesel export ban. How much would that do?
The U.S. ships millions of barrels of diesel fuel overseas each day even as Americans face unprecedented prices at home.
Diesel prices have soared to record highs recently, with the national average reaching $6.52 per gallon as of Tuesday, according to AAA. This surge has sparked calls to restrict diesel exports, a proposal President Donald Trump has endorsed. "I've called for it," Trump stated from the UN General Assembly. While diesel's usage is limited among U.S. drivers, it drives the nation's economy, powering trucks, ships, and trains, and is crucial in agriculture.
The war with Iran has raised diesel prices by nearly 80% since hostilities began, with a $1 per gallon rise in September alone. This price increase, combined with a drop in domestic oil reserves to their lowest since 1882, has left many lawmakers, including Senators Chuck Grassley, Ashley Hinson, and John Thune, urging Trump to curb diesel exports to aid American farmers and truckers.
An online dashboard tracking the impact of rising diesel prices since the war shows this has cost American households nearly $400 each, or over $51 billion in total. However, conflicting views exist on the effectiveness of such a ban. Some, like Patrick De Haan of GasBuddy, argue that U.S. diesel prices are dictated by global supply and demand, not domestic factors, making an export ban ineffective.
Others, such as the American Fuel & Petrochemical Manufacturers association, claim bans would harm the U.S. by reducing domestic production and raising prices. The debate remains open, with unclear consequences should Trump push for a ban, and Congress's potential support for such a measure.
Written by urgent.news from Grist's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
