Energy Secretary Chris Wright stated on Wednesday, September 23, 2026, that a federal ban on diesel exports would not be an effective strategy to lower fuel costs. Speaking at an event hosted by The Economist in New York, Wright described export restrictions as a "blunt tool" that could lead to unintended increases in the prices of gasoline and jet fuel. These remarks followed statements made on Tuesday by President Donald Trump, who expressed support for such a ban to address rising energy prices.
The policy discussion occurs amid record-high diesel prices driven by the U.S.-Israeli war with Iran and the conflict in Ukraine. According to AAA, average U.S. diesel prices reached $6.52 per gallon on Wednesday, a 76% increase compared to one year ago. The price surge has prompted concerns among farmers and other heavy fuel users, leading some Republican lawmakers in competitive districts to pressure the administration for relief ahead of the November 3 midterm elections.
Wright argued that if refineries are unable to export excess diesel, they will run out of storage space and be forced to reduce overall refining throughput. Because refineries produce multiple fuels simultaneously, a reduction in diesel production would also lower the supply of gasoline and jet fuel. The Department of Energy issued a statement following Wright's remarks, clarifying that the Secretary remains "fully aligned" with the President in exploring all options to lower costs, even as Wright advocated for a voluntary, cooperative approach with the refining industry rather than mandatory restrictions.
The oil and refining industry has warned that a ban could cause immediate shifts in how domestic energy is managed. A coalition of 36 industry groups, including the American Petroleum Institute and the U.S. Chamber of Commerce, sent a letter to the White House on Wednesday stating that U.S. refiners are currently producing more diesel than the country consumes. They argued that blocking exports would force plants to slow down, potentially leading to tighter supplies of gasoline and higher prices at the pump for the general motoring public. Interior Secretary Doug Burgum also noted that a ban could trigger retaliatory actions from foreign fuel exporters, which would specifically impact states like California that rely on imported energy.
What happens next depends on the administration's internal evaluation of fuel-price relief measures. While Politico reported on Wednesday that the White House was preparing a 90-day ban, the White House denied the report and stated it was still evaluating all options. Wright indicated that the administration would make official policy announcements in the coming days. These decisions come as the administration also manages shifting international energy ties, including encouraged investments in Venezuela following the capture of Nicolas Maduro in January. Any formal executive action or regulatory change regarding exports would likely be announced before the midterm elections on November 3, 2026.