Grassley Calls for Diesel Export Embargo Amid Record Prices

Senator Chuck Grassley (R-IA) urged President Donald Trump to impose a temporary ban on U.S. diesel exports, arguing that soaring domestic diesel prices are “killing farmers’ income.” Grassley likened the proposal to 1970s agricultural export embargoes, suggesting that a similar measure could relieve price pressure on farm equipment and trucking costs.

Newsweek

Average diesel prices have risen to roughly $6.50 per gallon nationally, up from about $3.70 a year earlier. In Iowa, the price reached a record near $6.30 per gallon, according to the American Automobile Association. Grassley and other Republicans attribute the spike to supply constraints linked to the ongoing conflict with Iran, which has disrupted shipments through the Strait of Hormuz—an artery that moves about one-fifth of global oil supplies. The Watson School of International and Public Affairs at Brown University estimates U.S. households have spent an additional $50 billion on diesel since the war began.

Newsweek

• The U.S.

Newsweek

• Interior Secretary Doug Burgum expressed doubt that an export ban would lower prices, warning it could provoke retaliatory export cuts and harm U.S. energy security.

Newsweek

• “Trump says the United States is winning the war in Iran and we are in control the Strait of Hormuz. Based on 10-dollar diesel fuel we are losing the war,” — John Boyd, founder and president of the National Black Farmers Association

Newsweek

• National diesel price: ~ $6.51 / gal (AAA).

The Hill

• Iowa diesel price: ~ $6.29 / gal (AAA).

The Hill

• U.S. diesel exports FY 2023: ~ 400 million barrels (Energy Information Administration).

Newsweek

• May 2024 diesel exports: ~ 50 million barrels, the highest since 2009.

Newsweek

The proposal has attracted mixed reactions on Capitol Hill. Senate Majority Leader John Thune said he is “open” to reviewing an export ban, while Representative Tim Burchett introduced legislation to prohibit diesel exports through January 2027. Industry and some officials caution that an embargo may not achieve the intended price relief and could undermine U.S. energy security.

Newsweek