Trump Administration Faces Pressure to Ban Diesel Exports Amid Record-High Fuel Prices

U.S. farmers are facing record-high fuel expenses as they prepare for the fall harvest amid rising pressure on the Trump Administration to impose a temporary ban on diesel exports.

Louisiana Governor Jeff Landry has advised President Donald Trump to order a 90-day ban on U.S. diesel exports, citing high prices that could drive up food costs. Senate Majority Leader John Thune is 'open to exploring' federal actions to alleviate the pressure on prices.

Iowa Republican Senator Chuck Grassley has called for a full ban on U.S. diesel exports, comparing the situation to bans on soybean and wheat export sales in the 1970s. He warned that if too much fuel is exported, 'the price of food could go up.'

According to the Independent Grocers Alliance, fuel and transportation account for 15% to 30% of the total cost of food in U.S. grocery stores. With average U.S. diesel prices soaring to almost $6.50 per gallon this week, farmers are paying about twice as much as last year to fuel tractors, combines, and grain trucks.

Energy economists Ed Hirs and Eric Smith have differing views on the situation. Hirs believes that Washington could revive policies from the 1970s to address the crisis, while Smith notes that the tightness in the U.S. diesel market is not caused by domestic policy, but rather Ukrainian drone strikes that have disabled Russian refining capacity.