Diesel Export Ban Debate Intensifies as US Prices Hit Record $6.50 per Gallon

U.S. diesel prices surged above $6.50 per gallon for the first time on record, prompting Republican lawmakers to propose banning diesel exports. Sen. Chuck Grassley and Rep. Tim Burchett have called for an embargo, while Louisiana Gov. Jeff Landry advocated for a 90-day ban. A White House official said Monday the administration is not considering export restrictions at this time. Diesel has climbed 83% year-to-date, driven by Middle East supply disruptions from the Iran conflict, Ukrainian strikes on Russian refineries, and export restrictions by Russia and China. Researchers warn an export ban would backfire. Bob McNally of Rapidan Energy Group called it "an authentic policy error," noting Gulf Coast prices might fall while East and West Coast prices spike due to import reliance. API CEO Mike Sommers said a ban would "make the problem worse." Analysts caution refiners could cut production, raising gasoline and jet fuel prices and threatening industry viability.