Trump signals support for US diesel export ban

US President Donald Trump said on Tuesday evening that he is prepared to support a ban on exporting diesel fuel from the United States. He made the comment after meeting with Ukrainian President Volodymyr Zelensky in New York, saying he had already raised the idea among his own people.

During the meeting, Trump also urged Zelensky to halt Ukrainian strikes on Russian oil refineries. According to the Financial Times, these strikes have caused a significant drop in Russia's oil refining volumes, forcing Moscow to impose its own ban on motor fuel exports.

Rising prices and political pressure

Since the war with Iran began in February this year, and amid the ongoing war in Ukraine, US diesel prices have risen 70% to reach $6.50 per gallon, surpassing the record levels seen in 2022. On Monday, a number of influential Republican lawmakers representing agricultural states in both chambers of Congress called for a diesel export ban along with other measures to lower fuel prices.

US Treasury Secretary Scott Bessent confirmed the Trump administration is examining the feasibility of such a measure, taking into account total refining capacity and whether a full or partial ban would work. The rapid rise in prices ahead of elections has become a political liability for the Republican Party, which controls the White House and both chambers of Congress, with polls showing voters increasingly critical of Trump's handling of the economy and inflation.

Potential impact on Europe

The Financial Times notes that a US diesel export ban could deliver an additional shock to Europe, one of the largest importers of American petroleum products. The US supplies 1.5 million barrels of diesel per day to the global market, out of a total worldwide seaborne supply of 8 million barrels. According to consulting firm Kpler, US diesel exports to Europe have jumped 50% since the start of the war with Iran, reaching a record 506,000 barrels per day in August.

The US has not imposed a ban on petroleum product exports since the 1970s, and lifted its ban on crude oil exports back in 2015. The American oil industry lobby strongly opposes any restrictions, arguing that diesel production is concentrated around the Gulf of Mexico while other parts of the country depend on imported fuel — meaning export limits would push global prices higher and hurt import-dependent US regions.