As diesel prices remain at record high levels, calls are increasing to keep fuel refined in the U.S. in this country instead of having it exported overseas.
AAA said the national average price for on-highway diesel today is $6.5217 per gallon, down a minuscule .0059 cents from yesterday's $6.5276. Still, today's diesel price is up from $6.3103 a week ago and $5.6074 a month ago.
With these prices and the specter of diesel shortages as a backdrop, several elected officials are calling for a ban on the exportation of diesel.
In his speech at the United Nations Tuesday President Donald Trump said he has been talking "within my people" about an export ban. In addition, Republican Sen. Chuck Grassley in a recent post on X called for an embargo on diesel exports. Louisiana Gov. Jeff Landry, in his own post on X, urged there be a 90 day halt to diesel exports.
One congressman has taken calls for diesel export restrictions one step further.
After saying on the floor of the House last week that diesel prices are "out of control", Tennessee Rep.Tim Burchett, a Republican, filed two bills to address the rising price of diesel. He said in a statement the legislation "would make the lives of all Americans more affordable."
The two bills are:
H.R. 10423 which implements an export control (ban) on diesel fuel until January 2027.
H.R. 10422 which implements an export control on diesel if the average national price hits $5 per gallon. The control would be lifted when prices drop at or below $4.50 per gallon for 30 consecutive days.
Prospects for both bills are dim since the House is out of session until after the Nov. 3 mid-term elections, and there will be less than three weeks left in the session after that.
In his statement, Burchett said diesel fuel powers the trucks, farm equipment, and machinery that keep the U.S. economy moving. He said higher fuel costs are ultimately passed on to consumers through higher prices for groceries, goods, and services.
“Diesel export controls drive down prices while also helping Americans keep more money in their pockets,” said Burchett. “Refiners typically make a profit of around $15 per barrel, or roughly 35 cents per gallon. Instead, refiners are choosing to sell their diesel for higher prices in Europe. Shipping American diesel overseas reduces domestic supply drives up prices at home. Today, refiners are profiting $117 per barrel, or $2.78 per gallon. That is a nearly 800% increase. American companies should prioritize American consumers and keep American diesel in America.”
Patrick De Haan, a petroleum analyst at GasBuddy, told CBS news an export ban "is very likely to backfire."
