President Trump said he is considering limits on diesel exports — a step that could lower domestic diesel prices but might slightly raise gasoline costs because diesel and gasoline are co-produced at refineries. He noted improving global energy flows, including crude shipments through the Strait of Hormuz returning to pre-war levels. Major industry groups warned a ban could tighten supplies and raise costs for families, farmers and truckers.
Trump Weighs Diesel Export Limits: Could Diesel Drop While Gasoline Rises?
Photo Credit: Kevin Dietsch/Getty Images
President Donald Trump said his administration is considering restrictions on diesel exports — a move he acknowledged could lower diesel prices but might also push gasoline prices slightly higher. Speaking to reporters in the Oval Office on Wednesday, Trump said he is "thinking about" a ban while noting advisers caution it could raise the cost of "other things."
How Diesel Policy Affects Gasoline
Diesel and gasoline are co-produced in the refining process, so reducing diesel shipments abroad can change the output mix at U.S. refineries. As Trump summarized, gasoline "would go up a little bit and diesel would come down a little bit." He stopped short of making a final decision and said the administration discusses the option "every day."
Broader Energy Context
Trump also highlighted improving global energy conditions, pointing to crude oil flows through the Strait of Hormuz — a critical route for global oil trade — which he said have returned to pre-war levels this week after disruptions in late February. "I think we're in a good place because oil prices are going to start to come down," he added.
Industry Reaction
The proposal alarmed major industry groups. A coalition including the U.S. Chamber of Commerce, Business Roundtable, National Association of Manufacturers and the American Petroleum Institute warned an export ban could "lead to less fuel production, tighter supplies and rising costs for American families, farmers and truckers." Industry leaders argue that limiting exports may reduce refinery throughput and push up prices for consumers and businesses.
What’s next: The administration continues to weigh the trade-offs between lowering diesel prices at home and the potential for modest increases in gasoline costs, with discussions ongoing among White House advisers and energy stakeholders.
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