Major U.S. business groups have urged President Donald Trump not to impose a ban on diesel exports, warning in a joint letter that such a move would backfire and push fuel prices higher rather than lower them.
The letter was signed by the U.S. Chamber of Commerce, Business Roundtable, National Association of Manufacturers, American Petroleum Institute and dozens of other organizations. The groups said an export ban would mean lower fuel production, tighter supply and higher costs for American families, farmers and truckers.
The signatories argued that calls to ban or limit diesel exports are being presented as a way to reduce prices, but in reality the opposite would happen. The letter was sent to Donald Trump on Wednesday.
The White House is facing growing political pressure, particularly from Republican lawmakers in farm states such as Iowa, to act on fuel prices ahead of the U.S. midterm elections. According to AAA, the national average diesel price on Thursday stood at $6.51 a gallon, up $2.82 from the same period last year.
Donald Trump said on Tuesday that he had supported an export ban during internal administration discussions. He said the United States produces a lot of diesel and that he had argued against sending it abroad. CNBC reported that the comments caught both the oil industry and business groups by surprise.
Feasibility under review
Asked to explain the administration's deliberations, Treasury Secretary Scott Bessent said the White House was studying whether a ban was “feasible in terms of the overall refining capacity” and whether a full or partial restriction could work.
A Politico report on Wednesday, citing unnamed sources, said the administration was preparing a plan to ban diesel exports for 90 days. That report pushed down diesel futures and shares of U.S. oil refiners.
At the same time, U.S. Energy Secretary Chris Wright told The New York Times that “nobody wants a full blanket ban or zero exports of diesel.” He said the discussion was focused on the most efficient way to get more diesel into the United States of America while maintaining maximum flows of gasoline, jet fuel and other products.
Chris Wright, who previously served as CEO of Liberty Energy, has also said a diesel export ban would raise U.S. gasoline prices. Energy experts similarly warn that while such restrictions could briefly send diesel prices sharply lower in some U.S. regions, prices would then rebound as refiners cut output.
The article also points to a broader international backdrop. Diesel prices have climbed after Ukraine's attacks on Russian refineries forced Moscow to ban diesel exports. Russia had previously been the world's second-largest diesel exporter. A ban on U.S. diesel exports would remove the global market's biggest source of supply.
In addition, Iran and its Houthi allies have attacked refineries in the Middle East, while exports through the Strait of Hormuz are constrained as Iran continues to threaten and attack tankers.
