Trump Considers Diesel Export Ban Amid Record Gas Prices, Sparking Internal Revolt
The potential policy shift contradicts previous statements from his top officials and alarms industry allies.
President Donald Trump is now "very seriously" considering a ban on U.S. diesel exports as gasoline prices reach record highs, a stance that reverses previous assurances from his top cabinet officials and has drawn criticism from Republican lawmakers and oil industry executives.
Trump told a reporter on Sunday that his administration is "thinking about it very seriously," when pressed on the ban during a golf tournament in Illinois. "That can oftentimes lead to a little bit of an increase on gasoline for cars, so we're looking at it very seriously. We may do it," he added. This statement marks a significant departure from earlier remarks by his Energy Secretary Chris Wright, who stated last week that "the blunt tool of banning diesel exports definitely doesn't work." Wright had previously warned in May that such a ban would "put upward pressure on gasoline prices and jet fuel prices" and was "absolutely" ruled out. Interior Secretary Doug Burgum also called export curbs "bad on all accounts" in May.
The U-turn comes as U.S. diesel prices have surged to around $6.50 per gallon, a nearly $3 increase from the previous year, according to AAA. The national average price for a gallon of regular gas has also risen to $4.48, up approximately $0.40 from a month ago.
Midale East strikes on oil refining sites, attributed to the Iran war, and attacks on energy facilities in Russia and Ukraine have contributed to the sharp price increases in the past month. Some experts have warned that these rising fuel costs will be passed on to consumers in other sectors, such as groceries and retail.
Republican lawmakers and oil industry executives, many of whom are MAGA-aligned donors, have expressed strong opposition to the potential ban. Texas Senator John Cornyn described the ban as "a gimmick" that "won't work." Senate Commerce Committee Chairman Ted Cruz called it a "mistake" that would "have massive harm to the refining industry" and "backfire badly" by forcing refiners to reduce production since the U.S. refines more diesel than it consumes.
Senators John Kennedy and Bill Cassidy of Louisiana have also voiced opposition, with Kennedy stating, "Everything I've read tells me it won't do any good." Opponents argue that restricting exports would quickly fill domestic storage tanks, potentially leading producers to decrease oil output. Mike Sommers, President and CEO of the American Petroleum Institute, stated, "The answer is more supply and more flexibility—not new restrictions that risk making a difficult situation worse."
Trump donor and oil executive Dan Eberhart told The Wall Street Journal that he believes the potential ban sends the "wrong signal" after investing in overseas customers. A spokesperson for the Department of Energy indicated that the administration is considering various options to lower energy costs and that President Trump will make the final decisions.
Trump's recent consideration of the export ban occurs as Republicans face increasingly unfavorable odds of retaining control of Congress in the upcoming November midterm elections. Prediction markets suggest Democrats have a high probability of winning control of both the House of Representatives and the Senate, with factors like the Iran war, gas prices, and affordability concerns cited as reasons for the GOP's struggles.