President Donald Trump has urged his advisers to support a ban on US diesel exports as fuel prices reach record levels, according to a Bloomberg report published by gCaptain. Treasury Secretary Scott Bessent said officials were assessing whether full or partial restrictions would be workable, taking account of overall refining capacity. The report described a continuing policy debate rather than an announced ban.
The proposal comes amid pressure from Republican lawmakers to retain more diesel for domestic users, including farmers and communities in rural Alaska that rely on it for electricity generation. Citing auto club AAA, gCaptain reported that average US retail diesel prices had exceeded $6.50 a gallon that week, while unleaded petrol stood at $4.48. Wars in Iran and Ukraine were identified as drivers of the diesel price surge.
The potential consequences for fuel distribution would vary significantly by region. The US Gulf Coast, which hosts substantial refining and export capacity, could accumulate large diesel inventories if overseas sales were halted. However, the report said prices could remain high in the Northeast and elsewhere because pipeline capacity and restrictions on domestic coastal shipping limit the movement of fuel between regions.
Those shipping constraints include Jones Act requirements for US-built and US-operated tankers carrying cargo between domestic ports. Although Trump has lifted some restrictions, the report said decisions were being considered individually. Retaining export volumes in the country would therefore not necessarily resolve supply constraints in regions distant from major refining centres.
Industry groups and energy analysts warned that any initial price relief could reverse as storage filled and refiners reduced production. Energy Secretary Chris Wright said storage could fill within two to three weeks, forcing lower refinery throughput and raising petrol costs. Interior Secretary Doug Burgum has also warned against a ban, while the American Petroleum Institute and National Ocean Industries Association have opposed restrictions.
Trump acknowledged that limiting diesel exports could also affect petrol, since both fuels are produced at the same refineries. He had met refiners earlier in the month to examine options for quickly increasing capacity. Meanwhile, senators Chuck Grassley and Dan Sullivan have backed export curbs, and Senate Majority Leader John Thune has indicated willingness to consider them.