Trump Weighs Diesel Export Ban Amid Record-High Fuel Prices

President Donald Trump is considering banning exports of diesel fuel to lower record-high prices, which are driven by wars in Iran and Ukraine. Analysts predict an export ban would lower diesel prices temporarily while raising them for gasoline and other fuels.

The trade-off would be a $0.25 per gallon decrease in diesel prices each week of the ban, but an increase of $0.30 per gallon in gasoline prices, according to economists at Goldman Sachs. The White House is preparing for a 90-day export ban, although Energy Secretary Christopher Wright says Trump isn't going to ban exports altogether.

Oil and business groups have urged Trump not to ban diesel exports, as it would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers. The U.S. has never outright banned diesel exports before, but did ban crude oil exports between 1975 and 2015.

Analysts expect the government to take some action on diesel, even if it's not a complete export ban. An open letter from business groups warned Trump against any export restrictions, citing the potential for higher gasoline prices and reduced fuel production.