Trump Discovers Export Ban Creates Cheap Diesel
President Donald Trump unveiled a new law of economics Tuesday, endorsing a possible ban on American diesel exports because the surest way to lower fuel prices is to obstruct the companies producing the fuel. With average diesel prices above $6.50 per gallon, Trump said the United States should “not send out the diesel,” while Treasury Secretary Scott Bessent confirmed that officials were studying a full or partial ban. The proposal drew interest from Republicans concerned about farmers, truckers and the entirely unrelated approach of the November midterms.
“We make tremendous diesel, the finest diesel anywhere, and when you keep it here and fill every tank until the refineries cannot move, that is called abundance,” Trump explained. “Companies always make more of a product when they have nowhere to sell it, and everybody knows less production means much lower prices.” Administration officials described the theory as a major advance over supply and demand, an aging doctrine under which reducing output can make scarce products more expensive. The White House model instead holds that fuel becomes cheaper when refiners are encouraged to stop refining it.
Energy Secretary Chris Wright briefly introduced “refinery logistics” into the discussion, warning that blocked exports could fill storage capacity, force plants to cut production and raise the cost of gasoline and jet fuel. His objection relied on the technicality that refineries manufacture several petroleum products at once and cannot simply keep the diesel while sending everything else through a patriotic side door. Officials dismissed that reasoning as refinery-minded pessimism, noting that arithmetic has repeatedly failed to account for Trump’s negotiating strength.
Under the emerging doctrine, Gulf Coast refineries will function as federally inspired diesel storage annexes, preserving large quantities of fuel that cannot be sold abroad while producing less of the gasoline Americans need at home. Republican lawmakers praised the plan as decisive action and prepared a backup measure prohibiting gas stations from displaying prices that could damage consumer confidence. The export ban therefore lowers fuel costs by reducing fuel production, limiting refinery operations and making every remaining gallon more valuable.
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