Trump Signals Export Ban on Diesel in the U.S.

U.S. President Donald Trump announced that the option of temporarily suspending diesel exports is being seriously considered to bring down the record‑high diesel prices in the country. Trump said the administration had not yet made a definitive decision on the matter, adding that export restrictions could help lower prices in the domestic market.

Trump's 'Serious' Message

When asked about the possibility of limiting diesel exports, Trump said the administration had examined the option in depth. The U.S. President also noted that such a move could raise gasoline prices, indicating that the impacts on various fuel markets were being taken into account.

Diesel Price Exceeded $6.50

Diesel prices in the U.S. have recently reached historic levels. According to AAA data, the price per gallon hit a record of $6.53 on September 22 and settled at $6.45 on September 28. The Associated Press also reported that prices had reached record highs due to disruptions in global energy supply.

The U.S. Exports 1.5 Million Barrels a Day

According to S&P Global Energy data, the United States consumes about 4.1 million barrels of diesel per day this year, while daily diesel exports reach about 1.5 million barrels. If the administration limits exports, more product is expected to remain in the domestic market, boosting supply in the short term.

Russia's Refinery Attacks on the Agenda

Trump cited Ukraine's attacks on Russian refineries among the reasons for the global pressure on the diesel market. The U.S. president said that attacks on refineries have affected diesel supply and are putting pressure on prices. S&P Global Energy notes that Ukraine's attacks have withdrawn roughly 800,000 to 1 million barrels of daily diesel supply from the Russian market.

Administration Examines Short-Term Formula

Under the Trump administration, economic officials are considering various options, including temporary or voluntary restrictions, rather than a complete halt to exports. In addition to Treasury Secretary Scott Bessent, other economic and energy officials in the administration are working on measures that could lower diesel prices. According to Reuters' September 28 report, the White House is also reviewing regulations that would broaden the use of red diesel, which could offer tax advantages, alongside export restrictions.

Energy Ministry Keeps Distance from a Full Ban

Energy Minister Chris Wright had earlier said that a comprehensive ban on diesel exports would not be implemented and that such a step could raise gasoline and jet fuel prices by reducing refinery output. The White House had also previously denied reports of a 90‑day comprehensive export ban and stated that the administration was evaluating options to increase fuel supply.

Tax Proposal from the Petroleum Sector

Petroleum sector representatives, however, propose temporarily lifting the federal diesel consumption tax instead of banning exports. According to the sector's assessment, this approach could directly lower the price paid by diesel users while helping to avoid the potential impacts of export restrictions on refinery output and other fuel prices.

New Risk for Gasoline Prices

Because diesel and gasoline are largely co‑produced in the same refinery processes in the United States, a long‑term restriction on diesel exports could reduce refineries' total output. According to a Goldman Sachs analysis, each additional week of an export ban, once refineries' storage capacity is full, could exert pressure for about a 30‑cent per gallon increase in gasoline prices.

The Trump administration is jointly considering options such as export restrictions, voluntary export cuts, and tax reforms to lower diesel prices. At this stage, there is no definitive decision on completely or temporarily halting diesel exports.