Trump considers 90-day diesel export ban to lower prices amid internal opposition
Quick Look
President Donald Trump is preparing to institute a 90-day ban on diesel exports to reduce soaring prices ahead of the midterm elections, despite opposition from Energy Secretary Chris Wright and Treasury Secretary Scott Bessent, who argue the move would disrupt refining operations and increase gasoline and jet fuel costs.
AI-generated summary
Why It Matters
Diesel prices have risen significantly over the past year, reaching $6.52 per gallon nationally, up from $3.69 one year ago, prompting the administration to consider export restrictions as a tool to alleviate consumer burden ahead of the midterm elections.
President Donald Trump is preparing to institute a 90-day ban on diesel exports in a bid to bring down soaring prices — despite opposition from Energy Secretary Chris Wright and officials and industry insiders, according to a new report.
The prohibition, which would be the first restriction on American energy exports in over a decade, could be announced in the coming days, Politico reported. The hope among administration officials is that, by redirecting diesel bound for Asia or Europe back into the U.S., it could ease prices ahead of the midterm elections.
However, a number of top officials, including Wright and Treasury Secretary Scott Bessent have expressed opposition to the proposal.
“The blunt tool of banning diesel exports definitely doesn’t work because the U.S. exports a lot of diesel,” Wright said during a discussion this week. “We’re the largest diesel exporter in the world, but that same refinery that produces diesel also produces gasoline and jet fuel. So, if you can’t export the diesel that comes out of our refineries when you run out of places to store it, and you have to reduce U.S. refining, which would put upward pressure on gasoline prices and jet fuel prices.”
On Wednesday, the average national price for a gallon of diesel stood at $6.52, up from $3.69 one year ago, according to AAA.
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What to Watch
AI outlook — possibilities, not facts
The administration will announce the 90-day diesel export ban within the coming days.
Likely · Within days
If implemented, the ban will lead to a short-term decrease in U.S. diesel prices.
Possible · Within weeks
Open Questions
- Will the diesel export ban be formally announced in the coming days?
- How will the ban affect U.S. refining operations and related fuel markets?
- What specific mechanisms will be used to enforce the 90-day export prohibition?
