Republican lawmakers from farm states are pressing Donald Trump to ban US diesel exports after the fuel hit a record $6.51 a gallon. The push comes weeks ahead of the midterm elections, while the oil industry and the White House have so far resisted a ban.
Republican lawmakers are ratcheting up pressure on Donald Trump to ban diesel exports as surging prices squeeze American farmers and truckers just weeks ahead of the midterm elections. Iowa senator Chuck Grassley called directly on Trump to suspend the exports, posting on X: "High diesel prices ARE KILLING FARMERS INCOME".
Diesel prices hit a fresh record
Diesel, described as the lifeblood of American industry and its farming heartlands, jumped to a fresh record of $6.51 a gallon on Monday. Prices in the US have risen by more than 70% since the Iran conflict broke out in February, topping the previous highs hit in 2022. Trump's war in Iran and the Ukraine-Russia conflict are driving a global shortage, and the approaching harvest is pushing up demand further as farmers in Europe and the US feel the squeeze.
Other Republican Congress members are demanding action too. Ashley Hinson urged the use of every option available to provide relief, including pausing diesel exports and creating a diesel relief programme. Zach Nunn called for selling American energy to Americans first.
Tennessee's Tim Burchett accused the oil industry of profiteering by selling diesel for higher prices in Europe and has introduced legislation to ban exports until January 2027, alongside a longer-term bill that would ban exports whenever the national average price exceeds $5 a gallon until it falls below $4.50.
Industry warns a ban would backfire
The oil industry strongly opposes an export ban, arguing it would worsen the shortage rather than ease it. Mike Sommers, chief executive of the American Petroleum Institute, said the US supplies roughly 1.5 million barrels a day of the approximately 8 million barrels of diesel traded globally by sea. Removing close to 20% of that supply, he warned, could push global prices higher and hit parts of the US that rely on imported diesel because infrastructure constraints leave some regions dependent on imports even though Gulf Coast refineries produce more than the region consumes.
Trump administration has so far resisted
The Trump administration has so far opposed an export ban, instead seeking to boost supply by tweaking shipping and environmental rules, though the efforts have had limited impact. Energy secretary Chris Wright floated using the Defence Production Act to expand refining capacity last week, but no funding, project, or timeline has been announced.
Consultancy Rapidan Energy put the chance of the Trump administration implementing an export ban at 35%. Rapidan founder Bob McNally said the administration has consistently rejected a ban, but that concern remains the president could change course under pressure.
The diesel inflation has become a political problem for Republicans as voters sour on Trump's handling of the economy and cost of living.
Source: Financial Times
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