GOP's Diesel Export Ban Plan Could Worsen Global Energy Crunch
The oil industry is pushing back against a potential ban on diesel exports as a way to bring down record costs for fuel, warning it could worsen the global energy crunch.
Congressional Republicans are searching for ways to lower fuel costs amid pressure from consumers and concerns about inflation. Diesel prices have repeatedly hit record highs over the last several weeks due to supply chain disruptions caused by the war in Iran, damage to refineries in the Middle East, and Russian energy sites in its war with Ukraine.
The national average for a gallon of diesel was $6.51 as of Thursday, nearly $3 more expensive than a year ago, according to AAA.
Energy Secretary Chris Wright has said that limiting America's exports would put pressure on fuel prices and that the administration is exploring voluntary restrictions instead of a blanket ban. Industry analysts have warned that a diesel export ban could lead to higher gasoline prices as refiners cut production to avoid storing excess product.