US diesel export ban could raise global fuel costs, experts warn

US President Donald Trump has said he is seriously considering a ban on diesel exports as fuel prices surge in the United States.

Diesel prices in the US are near a record $6.45‑$6.50 per gallon, according to the American Automobile Association, driven by the US‑Israel war with Iran and tight global supplies. Trump argues that keeping the extra 1.2‑1.5 million barrels of diesel produced daily in the domestic market would lower pump prices for American drivers ahead of the midterm elections.

The United States refines roughly four to five million barrels of diesel each day, with about 3.6 million barrels consumed domestically. The remainder is exported, mainly to Latin America (60‑70 %) and to European nations such as France, the Netherlands and the UK.

Experts warn that a ban would remove more than a million barrels of daily supply from the world market, likely causing international diesel prices to soar. Argus Media chief economist David Fyfe said this would push up global freight, food and industrial costs, feeding inflation worldwide. Analytics manager Sarah Raffoul added that the sudden gap would strain trade relationships and accelerate global price pressures.

While supporters in the US, including Republican TDs such as Congresswoman Ashley Hinson and Senator Dan Sullivan, view the move as protecting American workers, critics stress the potential damage to the US reputation as a reliable energy supplier.

Source: BBC News. Photo: Punit Singh / Pexels.