President Donald Trump on Tuesday signaled support for halting U.S. diesel exports, a move that would restrict roughly 1.3 million barrels of diesel per day—about one-quarter of the country’s refining output—according to energy analysts. The proposal comes as diesel prices in the U.S. average $6.51 per gallon, the highest on record, and follows disruptions tied to conflicts in Iran and Ukraine.
Industry groups urge rejection of ban
More than 30 U.S. business, energy, and manufacturing groups—including the American Fuel & Petrochemical Manufacturers (AFPM), American Petroleum Institute, Business Roundtable, National Association of Manufacturers, and the U.S. Chamber of Commerce—sent a joint letter to Trump on Wednesday opposing any export restrictions. The groups argued that a ban would reduce fuel production, tighten domestic supplies, and raise costs for consumers, farmers, and truckers.
“Export bans would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers,” the letter stated. The signatories also warned that restricting exports could weaken U.S. influence as a global energy supplier and benefit competitors. Energy Secretary Chris Wright separately stated on September 23 that no such measure was under consideration.
Administration examines feasibility
Trump’s remarks, made during the U.N. General Assembly in New York, took industry groups by surprise. “I’ve said let’s not send out the diesel. We make a lot of diesel,” he told reporters. “I’ve called for it within my people.” Treasury Secretary Scott Bessent later told the press that the White House was studying whether a full or partial ban would be feasible given refining capacity.
A report by Politico on September 27 suggested the administration was preparing a plan to ban diesel exports for 90 days, which contributed to a drop in diesel futures and shares of U.S. oil refiners. Wright later clarified to The New York Times that no final decision had been made.
Global repercussions if ban proceeds
Energy analyst Saul Kavonic, head of energy research at MST Marquee, warned that an export ban could trigger diesel rationing in Australia within weeks and push prices to over $4 per liter—a 50% increase from current levels. While Australia does not directly import diesel from the U.S., the global market disruption would disproportionately affect the country, which is the largest absolute importer of diesel worldwide. Australia’s heavy reliance on diesel for agriculture and mining magnifies the vulnerability.
Diesel prices in the U.S. have climbed 76% year-over-year, according to AAA data, with the average price at $6.51 per gallon on September 24. Industry groups emphasized that restricting exports could also reduce production of other fuels, such as gasoline and jet fuel, due to refineries’ interconnected output.
The administration has not yet confirmed whether a ban will move forward, but the proposal remains under interagency review.