Major U. S. business groups are sounding alarms, urging President Trump to rethink any plans for a diesel export ban. This week, in a letter that made waves, the U. S. Chamber of Commerce, Business Roundtable, and the American Petroleum Institute laid out their case. They argue that banning exports could backfire, driving up fuel prices instead of bringing them down.
The letter, which went out on Wednesday, spells out the risks: less fuel production, tighter supplies, and rising costs for Americans. Families, farmers, and truckers would bear the brunt. These groups insist that curbing diesel exports won’t lower prices as some believe.
Trump is under increasing pressure from Republicans, especially those in farm-heavy states like Iowa, to act on rising fuel costs before the midterms. Diesel prices shot up to $6.51 a gallon on Thursday, a $2.82 jump from last year, AAA reports.
At the U. N. General Assembly in New York on Tuesday, Trump made waves with his comments. He said he’s been pushing for an export ban in talks with his team. This stance surprised many in the oil industry and among business leaders.
Following Trump’s remarks, Treasury Secretary Scott Bessent addressed the issue. He said the administration is looking into whether an export ban is feasible, weighing refining capacity and the effects of a potential ban. A Politico report on Wednesday, citing unnamed insiders, said a 90-day diesel export ban plan was in the works. This news led to a drop in diesel futures and shares of U. S. oil refiners.
But U. S. Energy Secretary Chris Wright stepped in to clarify the situation later that day. He ruled out a full diesel export ban. Wright, who knows the oil industry inside out, said the aim is to boost U. S. diesel supply while keeping gasoline and jet fuel flowing. He cautioned that banning diesel exports could hike gasoline prices at home.
Energy experts are backing up these concerns. They suggest that while a ban might cut diesel prices in some parts of the U. S. temporarily, overall fuel prices could rise as refiners adjust to the restrictions.
This all plays out against a backdrop of global tension hitting diesel supplies hard. Ukraine’s strikes on Russian refineries have led Moscow to stop diesel exports, disrupting a market where Russia was the second-largest exporter. Plus, threats and attacks by Iran and its Houthi allies on Middle Eastern refineries are squeezing exports through the vital Strait of Hormuz.
