Trump Backs Diesel Export Ban as US Fuel Hits Record $6.53 per Gallon

President Donald Trump said Tuesday he backs a ban on US diesel exports to ease record-high fuel prices. Diesel in the US surged to $6.53 per gallon, the highest level ever recorded. Treasury Secretary Scott Bessent said the administration is examining whether a full or partial export ban would work without disrupting refinery capacity. The push comes ahead of November midterm elections as Republican candidates face pressure from voters hit by soaring energy costs.

Why diesel prices hit record highs

Global wars have crippled diesel supplies worldwide. Ukrainian attacks on Russian refineries have forced Moscow to halt diesel exports. Refineries in the Middle East face threats from Iran and its Houthi allies, constraining product exports through the Strait of Hormuz. The International Energy Agency noted that net diesel exports from Gulf countries averaged just 390,000 barrels per day in August, merely one quarter of pre-war levels. Brent oil has retreated to $99.25 per barrel this week but remains 35 percent higher than before the Iran war began in late February.

Trump’s export ban proposal and political timing

Trump told reporters at the UN on Tuesday that keeping domestic diesel supplies inside the US could ease both diesel and gasoline prices. “I’ve said let’s not send out the diesel. We make a lot of diesel,” he said. Republican lawmakers including Iowa Senator Chuck Grassley and Representative Ashley Hinson have called for an export ban ahead of the November 3 midterm elections. Hinson said Iowans “shouldn’t have to foot the bill at the pump” for wars abroad. Trump said a decision would come “fast, one way or the other” on whether to implement the ban.

What the US exports and industry pushback

The US exports roughly 1.3 million barrels of diesel per day, nearly a quarter of its total refining output. US refiners have rushed to capitalize on sky-high global prices. However, the American Fuel and Petrochemical Manufacturers trade group warned that an export ban would backfire, forcing domestic refiners to reduce production overall. The American Petroleum Institute added that “restricting US energy exports would only compound the problem,” arguing that more supply and flexibility, not new restrictions, are needed.

Global impact and Canadian context

Diesel is critical for farming, mining, and the trucks and ships that transport goods globally. Countries already struggling with high inflation due to reduced energy supplies are being hit harder. In California, diesel costs $8.44 per gallon, well above the national average. A US export ban would reshape global fuel markets and could affect Canadian energy prices and supply chains that depend on cross-border fuel flows.

Final Thoughts

Trump’s potential diesel export ban reflects political pressure before midterms but faces industry opposition and feasibility questions. The administration’s decision will reshape global fuel markets and could impact Canadian energy costs and supply chains.

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