US Business Lobbies Say Diesel Export Ban Would Backfire

25/09/2026 02:05 AST

Trade associations representing large US companies and energy suppliers urged President Donald Trump to resist calls for a diesel fuel export ban, arguing the move would backfire.

"Export bans would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers," said the September 23 letter, which was signed by the US Business Roundtable, the American Petroleum Institute and more than two dozen other trade groups.

"While we understand the urge for a silver bullet, there are no easy answers."

High fuel prices have emerged as a major drag in the upcoming midterm elections for Trump's Republican Party. Candidates from rural regions in Iowa and other states have urged an export ban on diesel, which is also used in trucks and other hauling vehicles.

While Trump administration officials such as Energy Secretary Chris Wright have rejected a ban, Trump himself on Tuesday signaled support for the move.

"I've called for that too. I've said let's not send out the diesel," Trump said on Tuesday.

Diesel prices in the United States have hit records due to the ongoing US-Iran war. Diesel prices currently average $6.51 per gallon, up 76 percent from the year-ago level.

The business groups argue exports allow "US refineries to balance their systems and maximize production," according to the letter. "An export ban would require refineries to throttle utilization to reduce diesel production to equal domestic demand. Falling utilization would result in less gasoline and jet fuel production and higher prices for those products as well."

Andy Lipow, of Lipow Oil Associates, a Houston consultancy, said there is limited storage capacity in the US Gulf Coast, home to much of the nation's refining capacity.

"If you were to ban diesel exports, the refiners have two choices. One is find a place to store it, or two is not to make it," said Lipow.

Asharq Al Awsat