The US oil industry is warning that restrictions on diesel exports could worsen fuel shortages and push up domestic prices as the Trump administration considers measures to increase supplies in the US.
President Donald Trump has backed the idea of restricting diesel exports amid record-high fuel prices. However, Energy Secretary Chris Wright has argued that a blanket export ban would not address the underlying supply problem and could instead reduce refinery output and increase prices for gasoline and jet fuel.
The American Petroleum Institute (API) has also opposed restrictions on US energy exports. API President and CEO Mike Sommers said restricting exports could compound existing refining challenges and ultimately hurt consumers.
“The answer is more supply and more flexibility—not new restrictions that risk making a difficult situation worse,” Sommers said.
The industry argues that US refineries, particularly those along the Gulf Coast, produce more diesel than the region consumes. Exports provide an outlet for this surplus and help refineries maintain high operating rates. Restricting exports could leave additional fuel in storage, forcing refiners to reduce production. This could also lower the supply of gasoline and jet fuel because refineries produce multiple products simultaneously.
Potential Impact on Fuel Prices
Wright has warned that restricting diesel exports could result in higher gasoline and jet fuel prices if refiners respond by reducing production.
“If you can’t export the diesel that comes out of our refineries, you run out of places to store it, and you have to reduce US refining, which would put upward pressure on gasoline prices and jet fuel prices,” Wright said.
Analysts have also warned that the effects could vary across US regions. Areas with substantial refining capacity could initially see additional diesel supplies, while regions more dependent on imports may receive less benefit.
A restriction could also have consequences for international fuel markets. The US is a major diesel supplier to Europe, while European refiners supply gasoline to the US. Changes to these flows could therefore affect fuel availability and prices on both sides of the Atlantic.
Political Pressure Over Fuel Costs
The debate comes as US diesel prices have reached record levels, increasing pressure on the administration to respond to rising costs for farmers, truckers and other diesel-dependent industries.
Republican lawmakers, including Iowa Senator Chuck Grassley, have called for restrictions on diesel exports as a way to increase domestic availability.
The national average diesel price reached approximately $6.52 per gallon, while gasoline averaged around $4.47 per gallon, according to AAA data cited in the original report.
The administration has been examining whether a full or partial restriction would be feasible without disrupting domestic refining operations. Wright has indicated that the government is considering alternatives to a blanket ban, including measures designed to increase domestic diesel availability while maintaining sufficient refinery output.
Global Supply Pressures
The debate is taking place against a broader disruption in global refined-fuel markets. Reduced Russian fuel exports following damage to refineries in the conflict with Ukraine have removed a significant source of diesel from international markets. The disruption has contributed to tighter global supplies and higher prices.
A US export restriction could further reduce the volume of diesel available to international buyers, potentially adding pressure to an already constrained global market.
The administration’s final approach remains under consideration. Current discussions have included potential restrictions and voluntary measures rather than a confirmed blanket export ban.
