President Donald Trump said he backs a ban on US diesel exports as domestic prices hit a record $6.53 a gallon. Treasury Secretary Scott Bessent said the administration is studying whether a full or partial ban is feasible, marking a reversal from the White House's position just a day earlier.
Donald Trump said Tuesday he supports banning diesel exports as soaring fuel prices squeeze American farmers and truckers ahead of November's midterm elections. "I've said let's not send out the diesel", the president told reporters following a meeting with Ukrainian President Volodymyr Zelenskyy in New York.
Trump said a decision is coming fast, one way or the other, as Treasury Secretary Scott Bessent said officials are weighing whether such a ban is feasible and whether a full or partial version would work. The comments mark an abrupt U-turn: the administration had insisted as recently as Monday that no ban was on the table, and Interior Secretary Doug Burgum said last week the White House would only consider one if it would actually lower prices.
Diesel prices hit a record
US diesel reached $6.53 a gallon on Tuesday, according to AAA, up from $6.27 a week earlier and from $3.69 a year ago. Global supplies are under strain from the wars in the Middle East and Ukraine. In a phone call with Zelenskyy on Sunday, Trump pressed Kyiv to halt drone attacks on Russian oil refineries, which he blamed for the elevated prices.
Republicans split over intervention
Republican legislators from rural regions, led by Iowa Senator Chuck Grassley, are pushing for action to curb the fuel-price surge. Tennessee Congress member Tim Burchett introduced legislation that would halt exports until January 2027, and Senate Majority Leader John Thune has indicated he is open to considering a ban. But not every Republican agrees: Nebraska Congress member Don Bacon said government intervention normally makes for worse results and that high prices should draw more diesel to market on their own.
Industry warns of a worse outcome
The oil industry has opposed any export limits. Mike Sommers, chief executive of the American Petroleum Institute, warned that restricting diesel exports would make the problem worse for consumers, farmers and the broader economy. Rebecca Babin, a senior energy trader at CIBC Private Wealth, told MarketWatch a ban would hurt US refiners and push global energy prices higher, since the US doesn't domestically produce all the fuel and crude products it needs. An export ban would also hit Europe, which relies heavily on American petroleum imports and has already seen protests over surging prices.
Sources: Financial Times, MarketWatch
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