Trump mulls diesel export limits, sparking split among Republicans
President Donald Trump is considering restricting diesel exports to curb high fuel prices, a move that divides GOP lawmakers.
Amid record gasoline prices, President Donald Trump said he will look into limiting diesel exports, a proposal that has drawn sharp disagreement within the Republican Party. A handful of GOP Senate hopefuls argue the ban would aid agricultural producers, whereas the majority of House and Senate Republicans reject the plan, suggesting measures such as cutting gas taxes or tapping federal oil reserves. Energy executives and the European Union have warned that restricting diesel could push worldwide fuel costs higher.
Analysts describe the proposal as a temporary band-aid that may even increase prices. Legal experts note Trump could enact the ban unilaterally under the International Emergency Economic Powers Act, though it would require a national emergency declaration. Critics, including several Senate leaders, dismiss the idea as ineffective and politically motivated.
Why it matters
The proposal could reshape U.S. fuel policy and affect global energy markets while highlighting deep GOP divisions ahead of elections.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 4 Trump convened a meeting with refiners at the White House to discuss pump prices.
- Sep 6 AAA linked the price surge to elevated crude oil prices from the Iran war and instability in the Strait of Hormuz.
- Sep 7 As the war enters its seventh month, crude oil has climbed past $100 per barrel, sending jet-fuel refining margins to $163. Airlines such as Qantas and Virgin are seeing fuel bills surge, leading them to increase fares, reassess seat capacity and rely less on hedging. In Australia, pump prices have jumped 37% for unleaded and 45% for diesel, adding pressure on motorists. Analysts warn that without a de-escalation, high fuel costs will persist throughout the year.
- Sep 7 Hungarian diesel price reached a record above 688 forints per litre.
- Sep 7 Diesel price rose to $5.85 per gallon, a new national high.
- Sep 9 The president blocked the tax on extraordinary profits of energy firms, leaving the state without budgetary means to aid motorists.
- Sep 12 Rough’s production licence is set to expire in April, ending extraction at the site.
- Sep 17 In its first rate increase since 2023, the Fed lifted the policy rate by a quarter point to a 3.75-4.00% range, with every governor supporting the decision. Market participants interpret the action as a more hawkish stance, prompting concerns for rate-sensitive assets such as small-cap stocks. The lack of clear forward guidance from new chair Kevin Warsh adds to uncertainty, while forecasts point to at least one additional hike this year and a pause in 2027.
- Sep 18 The Sejm voted to pass the extraordinary‑profits tax on fuel companies.
- Sep 19 Diesel prices reached $5.68 per gallon, the highest figure since 2022.
- Sep 20 The Fed implemented a modest rate increase and a hawkish tone from the new chair.
- Sep 22 Indian airlines have increased seat capacity in Delhi and Maharashtra.
- Sep 24 Gas storage levels are now reported at about 69% of capacity, below the usual seasonal target.
In this story
Related stories
20 in this thread