U.S. President Donald Trump said he is still looking "very seriously" at banning exports of American-made diesel. The remarks came after U.S. retail diesel prices hit a record high of about $6.5 a gallon on average last week, and as voters' anxiety over living costs grows ahead of the November midterm elections.
Speaking to a Fox News reporter on the 27th, Trump said a ban "could drive up the price of gasoline for passenger cars a little bit." He added, "That's why we're looking at it very seriously, and we may do it."
The administration and the industry are split three ways over how to respond to high fuel prices. While the president is weighing an export ban, Energy Secretary Chris Wright said last week that the government is discussing voluntary export restraint with refiners rather than a mandatory ban.
Oil company chief executives and industry groups want a suspension of the federal diesel excise tax instead of an export ban, arguing that it would lower prices without the side effects of a ban. A ban could hurt refiners, who have enjoyed an export boom as demand rose after the outbreak of war. Internal debate continues over how to structure the tax relief, however, and the House's recess ahead of the elections is an obstacle.
National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer have spent the past week analyzing the fallout from a short-term export ban. Some lawmakers had earlier asked Trump to restrict diesel exports during the peak autumn harvest season for farmers.
The United States has emerged as the supplier of last resort for diesel consumers worldwide amid the U.S.-Iran war and the Russia-Ukraine war. Shipping disruptions in the Strait of Hormuz and Ukrainian attacks on Russian refineries have rattled global fuel markets. Diesel exports approached 2 million barrels a day last month, a record on a weekly basis. In the United States, diesel powers farm machinery, freight trains, trucks and delivery vans.
A ban would be expected to send domestic diesel prices sharply lower in the short term. U.S. allies including Brazil and the United Kingdom, by contrast, would likely have to scramble to secure fuel.
Separately, the Trump administration is preparing new Corporate Average Fuel Economy (CAFE) standards that would ease vehicle fuel efficiency rules introduced under former President Joe Biden. The move is intended to reduce costs for consumers and bolster the U.S. auto industry as high fuel prices ripple through the broader economy. If the final rule matches last year's proposal, the fuel economy requirement for model year 2031 vehicles would fall to 34.5 miles per gallon (14.67 kilometers per liter) from about 50 miles.
In a social media post on the 26th, Trump said the new standards "will cut the waste out of making cars in America." He added, "That means prices come down, and families will save thousands of dollars while buying new, beautiful, safe cars."
