White House Rules Out Diesel Export Ban as Prices Surge Above $6.50

The White House on Wednesday moved to quash reports that it was preparing a temporary ban on diesel exports, saying the Administration is not pursuing a blanket restriction. A White House official specifically denied reporting of a 90-day export embargo, and Energy Secretary Chris Wright told reporters that no flat ban on diesel shipments is being considered. The clarification followed public comments the previous day from President Donald Trump, who suggested keeping more diesel at home, and Treasury Secretary Scott Bessent, who said officials were examining whether full or partial export restrictions might be feasible. Those remarks had stirred momentum among some Republican senators, including Iowa’s Chuck Grassley, who urged an embargo to relieve high diesel costs for farmers and truckers. Officials and industry representatives stressed that the Administration’s current focus is on ways to increase the supply of diesel to the domestic market while avoiding disruptions to gasoline and jet fuel flows. Wright said discussions have included voluntary measures but he warned a flat ban could push up gasoline and jet fuel prices. The American Petroleum Institute and analysts have similarly argued that export limits would worsen refining challenges and ultimately harm consumers. Industry analysts note the spike in U.S. diesel prices is tied to a global shortages driven in part by supply disruptions associated with the conflicts involving Iran and Ukraine. AAA reported the national average diesel price at $6.5276 per gallon as of Tuesday, roughly $1 higher than a month earlier and nearly $3 above the level a year ago. Critics of a ban, including Patrick De Haan of GasBuddy, say an export restriction would not insulate U.S. prices from global market forces and could undermine long-term refinery investment and the U.S. role as a major diesel supplier to the world.