Trump Weighs Diesel Export Ban to Lower Record Fuel Prices

President Donald Trump is weighing several regulatory measures to lower diesel prices after they reached a record $6.53 per gallon. The administration is considering a ban on diesel exports, voluntary export limits by refiners, and expanding the sale of red-dyed, tax-exempt diesel typically reserved for farming and construction. Trump acknowledged that an export ban could have a "negative impact on gasoline" by increasing its price.

The fuel crisis is driven by declining global inventories and supply disruptions resulting from Ukrainian strikes on Russian refineries and a U.S. conflict with Iran. While crude exports through the Strait of Hormuz have returned to prewar levels following U.S. and Israeli attacks on Iran in February, Trump attributed the current crisis primarily to Russia's war against Ukraine.

Energy Secretary Chris Wright reported that American refiners are operating at record highs, though supplies remain tight due to issues in China and conflicts in Russia and the Middle East. The White House has also requested that the European Union release emergency diesel stocks. Energy analysts warn that expanding tax-exempt diesel would reduce federal tax revenues without addressing underlying wholesale market shortages.