Trump says US is ‘very seriously’ considering diesel export ban to tackle high prices

President Donald Trump remains open to the possibility of imposing a US ban on diesel exports to address soaring prices, according to a Fox News reporter on Sunday. The ban, while being considered seriously, may still result in a slight increase in gasoline prices for cars, Trump stated. The move is being explored amid global fuel market disruptions, with the US becoming the primary supplier of diesel.

Recent exports have reached a weekly high of nearly 2 million barrels a day. Administration officials, including National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, and US Trade Representative Jamie Jamieson Greer, have been examining the potential implications of a short-term ban on US diesel exports.

However, oil CEOs and industry groups have advocated for suspending the federal diesel excise tax as a more effective solution, arguing it could reduce prices without the drawbacks of export restrictions. Diesel powers essential industries, including farm equipment, freight trains, trucks, and delivery vans, contributing to rising retail prices and voter concerns about living costs before the November midterm elections.

Energy Secretary Chris Wright has expressed the administration's willingness to work with refiners on voluntary export curbs as an alternative to an outright ban. Some companies are already implementing contractual safeguards in anticipation of potential disruptions to diesel shipments abroad. In the event of a ban, US diesel prices are expected to decline, providing relief to local markets, particularly for allies grappling with fuel shortages.