Lawmakers Call for Diesel Export Ban to Lower Fuel Prices

Louisiana Governor Jeff Landry and a coalition of Republican and Democratic lawmakers are calling for a temporary ban or moratorium on U.S. diesel exports to lower domestic fuel costs. Diesel prices have exceeded $6 per gallon in some regions, a surge attributed to a seven-month war with Iran and the conflict in Ukraine. Landry proposed a 90-day moratorium, arguing that federal policies currently prioritize global markets over domestic supply.

In Iowa, U.S. Senate candidates Ashley Hinson and Josh Turek both advocated for halting diesel exports and pausing the federal gas tax. Senator Chuck Grassley specifically urged President Donald Trump to implement an embargo to protect farmers' incomes. Other supporters, including Representative Mike Rogers and Senate Majority Leader John Thune, argued that American energy should prioritize domestic consumers, particularly truckers and farmers in the Midwest.

Industry groups, including the Louisiana Mid-Continent Oil and Gas Association and the American Fuel and Petrochemical Manufacturers, oppose the measures. They warn that because refineries co-produce gasoline and diesel and lack sufficient storage, halting exports would force refineries to cut overall production, which would inadvertently raise gasoline prices. Additionally, Interior Secretary Doug Burgum and energy analysts warned that export restrictions could trigger international retaliation and disrupt global supply chains. The White House has not yet taken action on the proposals.