Trump administration drops possible diesel export ban

Administration steps back

The Trump administration backed away from a potential ban on diesel exports after President Donald Trump said he had asked aides to consider keeping more diesel in the United States.

Trump said Tuesday at the United Nations General Assembly in New York that he had been discussing the idea with members of his administration. Treasury Secretary Scott Bessent said officials were examining whether a full or partial restriction would work with the country’s overall refining capacity.

The proposal was considered as diesel prices rose sharply. The national average reached a gallon for the week of Sept. 21, 2026, compared with during the corresponding week a year earlier, federal energy data showed. The increase came as the war in Iran entered its eighth month and conflict continued to block or interrupt oil shipping routes.

Warning about broader costs

Joe Brusuelas, principal and chief economist at RSM US LLP, said restricting exports could initially reduce diesel prices in parts of the country but that the relief could be temporary. He estimated that consumers could begin seeing other prices rise within four to six weeks if a ban took effect.

Diesel powers trucks, freight trains, farm equipment and heavy machinery. Higher fuel expenses can increase costs for trucking companies, farmers and other businesses that move or produce goods.

Brusuelas said those expenses could eventually reach households through higher prices for groceries, delivered packages, household products and new homes. His warning highlighted the central tradeoff: an export limit intended to hold down domestic fuel prices could instead add costs elsewhere in the economy.