A potential ban on U.S. diesel exports could have “a negative impact on gasoline,” U.S. President Donald Trump said late on Wednesday, although he didn’t rule out such a move from the Administration.
The President told reporters in the Oval Office that he and the Administration continue to discuss the pros and cons of a diesel export ban every day, “but it just seems that it would have a negative impact on gasoline.”
Earlier this week, Goldman Sachs analysts also warned that a U.S. diesel export ban would push domestic gasoline prices higher as refiners could be forced to reduce processing rates.
President Trump on Wednesday appeared to be less inclined to ban diesel exports than a few days ago, but he has not yet ruled out the idea that emerged last month as retail diesel prices in the United States hit $6 per gallon nationwide average for the first time ever, and then $6.50 a gallon.
As a result of the jump in crude oil prices and a worsening global crunch for fuels, U.S. gasoline prices are also at a record high level for this time of year, even as demand is easing after the end of the peak driving season. At an average nationwide price of $4.43 per gallon, the price of regular gasoline is higher than the $4.08 from a month ago and way higher than $3.15 per gallon on this day in 2025.
Diesel prices have hit record highs in many economies amid refinery constraints in the Middle East and Russia, which refineries elsewhere cannot offset even if they run at maximum utilization rates, as is the case in the United States.
Refinery capacity is constrained in the Middle East due to Iranian strikes on refineries and the trickle of fuel flows through the Strait of Hormuz. Then there is also severely restricted capacity in Russia due to Ukrainian drone strikes at Russian refineries. Russia has just extended its ban on diesel exports through October 31.
By Tsvetana Paraskova for Oilprice.com
