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The Trump administration is looking into whether implementing a diesel export ban would ease record high prices for the critical fuel, Treasury Secretary Scott Bessent said Tuesday. "We're examining whether it's feasible in terms of the overall refining capacity and whether a full or partial ban would work," Bessent said at a bilateral meeting between President Donald Trump and Ukrainian President Volodymyr Zelenskyy at the United Nations. Trump said Tuesday he's advocated for a diesel export ban during internal administration deliberations. The president said a decision would quickly be made "one way or another" on whether to implement a ban. "I've said let's not send out the diesel. We make a lot of diesel," Trump told reporters. Republican lawmakers including Sen. Chuck Grassley of Iowa have called for an export ban as high diesel prices hit farmers and truckers ahead of the November midterm elections. Diesel in the U.S. has surged to a record high $6.53 per gallon, almost $3 above the level last year, according to data from AAA. In California, diesel costs $8.44 per gallon. Fuel prices have jumped as the wars in Eastern Europe and the Middle East have slashed global refining capacity. Ukraine's attacks on Russian refineries have forced Moscow to implement a diesel export ban. Refineries in the Middle East have also come under attack from Iran and its Houthi allies. And product exports through the Strait of Hormuz are constrained due to Iranian threats to tankers. The oil industry lobby group the American Petroleum Institute warned that "restricting U.S. energy exports would only compound the problem—exacerbating refining challenges and ultimately hurting consumers." "The answer is more supply and more flexibility—not new restrictions that risk making a difficult situation worse," API CEO Mike Sommers said in a statement. U.S. refiners have rushed to take advantage, ramping up diesel exports to help supply the world and reap sky-high profits. Diesel cost around $207 a barrel Tuesday, more than $100 above the price of crude oil. Diesel plays an essential role in the economy. It fuels the trucks and trains that deliver goods to market and the farm equipment that harvests crops. Higher diesel prices trickle down to consumers in higher grocery bills and what they pay for consumer products.
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