The European Union has formally requested the Trump administration maintain unrestricted diesel exports from the U.S. as winter approaches, citing concerns over fuel supply disruptions and cost spikes. Meanwhile, U.S. diesel prices have surged to an average of $6.50 per gallon, nearly doubling from $3.69 a year ago, according to AAA data.
U.S. Senate Republicans push permitting reform as EU lobbies against export restrictions
Senate Republicans are accelerating efforts to pass a permitting reform bill before the chamber recesses next week, warning that further delays could derail the legislation entirely. Energy and Natural Resources Committee Chairman Sen. Mike Lee (R-UT) stated that postponing a vote until after the midterm elections would likely result in the bill’s failure, telling reporters, “If we wait until after the election, it is almost certainly not going to happen.”
At the same time, the European Union’s energy commissioner, Dan Jørgensen, urged President Donald Trump to preserve a “free flow” of diesel exports to Europe, emphasizing the continent’s reliance on U.S. fuel supplies ahead of winter. Jørgensen’s request was made in a Financial Times interview, where he framed the issue as critical to preventing energy shortages and economic strain.
U.S. diesel prices hit record highs, straining businesses and consumers
Diesel prices have reached near-record levels, with the national average at $6.50 per gallon as of Friday, just below the September 22 peak of $6.53. This spike has disproportionately impacted schools, farmers, and small businesses, which rely heavily on diesel for transportation and operations.
In Georgia, diesel prices averaged $6.32 per gallon, up from $3.54 a year ago. The Atlanta Community Food Bank reported it will spend an additional $100,000 this year on diesel, a cost that could otherwise provide 122,000 meals to families in need. Kenneth Hill, the food bank’s supply chain officer, noted the financial strain on operations.
Farmers and ranchers are also facing severe economic pressure. Andrew Coppin, CEO of Ranchbot, which sells remote monitoring technology for agricultural equipment, described diesel as “the single biggest input into a lot of farming operations.” He added that rising fuel costs have led to increased inquiries from ranchers seeking to optimize diesel usage in their operations.
Policy and economic implications of potential export restrictions
The Trump administration has not yet confirmed whether it will impose restrictions on diesel exports, but the EU’s lobbying reflects broader concerns about global fuel markets. A ban or reduction in U.S. diesel exports could exacerbate supply shortages in Europe, where energy costs have already strained households and industries.
Senate Republicans argue that permitting reform is necessary to accelerate domestic energy projects, including those that could increase fuel production. However, Democrats have delayed the vote, seeking broader caucus support before proceeding. Lee criticized the delay, stating, “This project to diminish the delays is itself likely going to die on the vine because of this delay they’re insisting on.”
The surge in diesel prices has also raised inflation concerns, as higher fuel costs increase the price of transporting goods across the country. The transportation sector, which relies heavily on diesel, faces mounting financial pressure as fuel expenses rise.
Background: The permitting reform debate
The permitting reform bill under consideration in the Senate aims to streamline the approval process for energy infrastructure projects, including pipelines and refineries. Supporters argue that reducing regulatory delays could lower energy costs and boost domestic production. Opponents, however, contend that the bill could weaken environmental protections and public oversight.
The bill’s fate remains uncertain as lawmakers navigate political divisions and competing economic priorities. Meanwhile, the EU’s appeal to the Trump administration underscores the interconnected nature of global energy markets and the potential ripple effects of U.S. policy decisions.