Diesel Export Ban: A Recipe for Higher Gasoline Prices

The White House considered banning diesel exports to lower record prices in the US, but the idea is now being met with skepticism. The proposed ban would have forced US refiners to cut crude runs by about 20-25%, resulting in a shortage of gasoline and jet fuel.

This would lead to higher prices for those fuels as they are imported from other countries that already face refining capacity constraints. In contrast, diesel prices would plummet in the US, but spike in other parts of the world where demand is high.

The ban's impact on soybean oil and biomass-based diesel blending would also be significant, with lower bean oil prices needed to offset the low diesel price.