US Considers Diesel Export Ban to Curb Surging Fuel Prices, FT Reports

The White House is considering a range of measures, including a potential ban on diesel exports, to rein in surging domestic fuel prices amid growing political pressure over the energy crisis, the Financial Times reported Wednesday, citing people familiar with the matter.

Details of the Proposal

According to the report, administration officials have begun discussions about restricting international sales of diesel and have notified allies, including the United Kingdom, about potential supply disruptions. A White House official cited in the report confirmed that various options to lower fuel prices are being evaluated but stated that no decision has been made on export restrictions.

The issue has reportedly created a divide between oil companies and Republican lawmakers from agricultural states. Farming groups have warned that high diesel costs could severely impact farmers and related industries, especially ahead of the midterm elections.

Market Context

The potential move comes as U.S. diesel prices have climbed dramatically. The Financial Times reported that prices reached $6.53 per gallon last week, an increase of more than 70% compared to pre-war levels.

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An export ban could lower domestic prices by trapping supply within the U.S. However, such a move would likely disrupt global energy markets, which are already tight, and could strain relationships with European allies who rely on U.S. fuel imports.

Other Options Under Review

In addition to an export ban, officials are reportedly discussing several other measures to provide relief at the pump. These alternatives include:

• Further waivers for the Jones Act, a law that governs maritime shipping between U.S. ports.
• Providing various forms of tax relief.
• Easing regulations on the use of lower-cost dyed diesel.