Trump Mulls U.S. Diesel Export Ban Amid Rising Fuel Costs

In response to soaring diesel prices that are hurting farmers, truckers and construction workers, President Donald Trump has said he is “evaluating all the options” and would like to ban U.S. diesel exports. The idea marks a reversal of his earlier stance that championed expanding energy exports after he lifted the Biden-era LNG permitting pause on his first day in office. An industry source reported that Energy Secretary Chris Wright has reached out to refiners about voluntary export limits, while a White House official confirmed no formal policy has been announced.

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Trump’s push follows a January 2024 campaign attack on the Biden administration’s freeze on new LNG export approvals, which he framed as a “war on energy.” Since taking office, his administration has promoted higher energy exports, yet the war with Iran and record diesel prices have created political pressure ahead of the midterm elections. Republican Sen. Chuck Grassley has publicly called for a ban, arguing that “record diesel prices are killing” farmers’ incomes. The United States remains the world’s largest exporter of natural gas, oil and refined fuels, a status that analysts say could be jeopardized by a ban.

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President Trump has indicated that a diesel export ban is under consideration to lower pump prices for American consumers. A White House spokesperson reiterated that no official decision has been made. President Joe Biden, speaking in 2024, defended his administration’s climate-focused policies, stating that his team would not be complacent about the climate crisis. Energy market researchers warn that a ban would force refiners to cut crude runs, potentially raising gasoline, diesel and jet-fuel prices.

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Industry leaders argue the proposal lacks economic sense. Mike Sommers, president and CEO of the American Petroleum Institute, said restricting diesel would be “bad policy” regardless of the administration. Former energy secretary Dan Brouillette warned the reversal creates “confusion” in the sector. Analysts such as Tom Kloza of Gulf Oil warned a ban would place the United States “behind the eight-ball” on gasoline supplies.

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• “This is a classic lose-lose proposition. And this is what populism looks like, whether it’s the current right-wing flavor of the month or the left-wing version building up,” — Joe Brusuelas, chief economist at RSM US

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• “Bad policy doesn’t become good policy just because the administration changes,” — Mike Sommers, president and CEO of the American Petroleum Institute

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• “Since a refinery can’t simply stop making diesel while continuing to produce the same amount of gasoline, crude runs eventually would have to fall,” — Natasha Kaneva, head of global commodities strategy at JPMorgan

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• “It’s pretty ironic to see the Trump administration at least throw around the concept of a diesel export ban,” — Tom Kloza, chief energy adviser at Gulf Oil

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