Trump Team Weighs Diesel Export Ban as Fuel Prices Smash Records

The Trump administration is examining whether a ban on diesel exports could ease record fuel prices in the United States, according to Treasury Secretary Scott Bessent. Officials are considering both full and partial restrictions while assessing the implications for domestic refining capacity.

“We’re examining whether it’s feasible in terms of the overall refining capacity and whether a full or partial ban would work,” Bessent said Tuesday. He spoke during a bilateral meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the United Nations.

Trump said Tuesday that he had advocated for a diesel export ban during internal administration deliberations. The president indicated that a decision on whether to impose the restriction would be made quickly “one way or another.”

“I’ve said let’s not send out the diesel. We make a lot of diesel,” Trump told reporters. His comments placed the possibility of export restrictions directly into the administration’s response to soaring domestic diesel costs.

Republican lawmakers, including Sen. Chuck Grassley of Iowa, have also called for an export ban. Their push comes as elevated diesel prices squeeze farmers and truckers ahead of the November midterm elections.

Diesel prices in the United States have surged to a record $6.53 per gallon, according to data from AAA. That national price is almost $3 higher than the level recorded last year, while diesel in California has reached $8.44 per gallon.

The price shock follows disruptions to global refining capacity caused by wars in Eastern Europe and the Middle East. Those conflicts have tightened the availability of refined products at a time when diesel remains essential to freight transportation, agriculture and the wider economy.

Ukraine’s attacks on Russian refineries have forced Moscow to impose its own diesel export ban. The disruption has removed or constrained refining capacity and contributed to the pressure facing international fuel markets.

Refineries in the Middle East have also come under attack from Iran and its Houthi allies. At the same time, Iranian threats against tankers have constrained product exports moving through the Strait of Hormuz.

The combination of damaged refining infrastructure and restricted trade routes has pushed fuel prices sharply higher. US refiners have responded by increasing diesel exports to help supply international markets while capturing exceptionally strong profits.

Diesel traded at around $207 per barrel Tuesday. That placed the refined fuel more than $100 per barrel above the price of crude oil, illustrating the extraordinary premium attached to available diesel supplies.

The American Petroleum Institute, an oil industry lobbying group, warned that limiting US energy exports could worsen the market strain rather than relieve it. The group argued that restrictions would compound existing refining problems and ultimately harm consumers.

“restricting U.S. energy exports would only compound the problem—exacerbating refining challenges and ultimately hurting consumers,” the American Petroleum Institute warned. API CEO Mike Sommers argued that increasing supply and preserving flexibility offered a better response than imposing new trade restrictions.

“The answer is more supply and more flexibility—not new restrictions that risk making a difficult situation worse,” Sommers said in a statement. The industry’s warning puts refiners at odds with administration officials and lawmakers examining whether keeping more diesel at home could ease domestic prices.

Diesel is a critical fuel across the US economy because it powers trucks and trains that carry goods to market. It also fuels the farm equipment used to harvest crops, leaving agricultural producers directly exposed to higher costs.

Those costs can move beyond farms, railways and trucking fleets. Higher diesel prices can reach consumers through more expensive grocery bills and increased prices for other consumer products transported through diesel dependent supply chains.

The administration has not announced whether it will pursue a full ban, a partial ban or no restriction. For now, officials are evaluating feasibility, refining capacity and the possible consequences while Trump presses for a rapid decision.