A Shell gas station in Raleigh, North Carolina, advertises diesel at $6.19 per gallon, September 20, 2026. Banning US diesel exports would disrupt the integrated North American supply chains that keep fuel prices in check and push prices even higher across much of the country. (Shutterstock/Wileydoc)

Why Limiting US Diesel Exports is Likely to Fail

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Banning diesel exports would disrupt the integrated North American oil market, cut refinery output, and push prices higher across much of the United States.

With the Iran war and substantial damage to Persian Gulf and Russian refining capacity, global diesel prices have risen. The US national weekly average diesel price has risen above $6 per gallon, with West Coast prices breaching $7, prompting some to call for a ban on exports of diesel fuel. Paradoxically, a ban would raise prices in many parts of the United States at a time when President Donald Trump is trying to reduce inflation.

Oil and gas markets are highly integrated across worldwide supply chains, and when a major supply source is disrupted, world markets adjust.  Not only were supplies of crude oil and petroleum products (especially middle distillates) disrupted as a result of the Middle East conflict, but........

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