The White House has not ruled out a ban on U.S. diesel exports as retail prices hit a record $6.05–$6.28 a gallon this month, up from about $3.70 a year ago. Analysts warn the move could tighten supply and do little to lower pump prices.
U.S. refiners export roughly a quarter of their diesel output, but lack the pipeline and terminal capacity to redirect that volume to domestic buyers overnight. Analysts say a ban could prompt refiners to cut production rather than increase domestic supply, limiting any price relief before it reaches consumers.
Prices have surged amid the Iran conflict’s disruption of traffic through the Strait of Hormuz, which once carried about a fifth of global daily oil flows; the Russia-Ukraine conflict is also a factor. Buyers include Brazil, Chile, Mexico, Peru, Morocco, France and the U.K. The article says Mexico, Brazil and Chile lack sufficient refining capacity, while European buyers have leaned more on U.S. diesel since sanctions cut Russian supply. A ban could force importers to seek alternatives in an already tight market, and they may not return.
