U.S. President Donald Trump has signaled he is considering a potential ban on diesel exports in a bid to lower fuel prices for Americans, a move that is drawing sharp criticism from energy experts who warn it could trigger global market chaos.
The proposal emerged during a meeting with Ukrainian President Volodymyr Zelenskyy at the UN General Assembly on Tuesday. Trump suggested that curbing outgoing shipments could alleviate domestic price pressures ahead of crucial November midterm elections. “I’ve said, ‘Let’s not send out the diesel.’ We make a lot of diesel. That could have a little bit of an effect on regular automobile gasoline,” Trump remarked.
U.S. Treasury Secretary Scott Bessent confirmed that the administration is currently evaluating the feasibility and potential impacts of a full or partial ban. However, following a report by Politico suggesting the government was preparing a 90-day export freeze, White House officials on Thursday denied that any such plan is in active development, and U.S. Energy Secretary Chris Wright stated that a total ban is not on the table.
The rhetoric comes as fuel costs hit historic highs. Diesel prices in the U.S. have soared past $6.50 per gallon, nearly double the average from this time last year. In Canada, the situation is equally dire; prices have remained above $2 per litre for three months, sitting at $2.66 as of Thursday.
Energy analysts are sounding the alarm, characterizing the idea as a “hare-brained” policy that fails to address the root causes of the supply crunch, namely geopolitical conflicts in Iran and Ukraine that have crippled global refining capacity. The U.S. currently exports approximately 1.5 million barrels of diesel per day, primarily to Western Europe and Latin America. Removing that volume would likely cause a massive price ripple effect.
“It would send a very chilling signal to U.S. refineries that the government is going to dictate what you can and what you can’t do in terms of your supply,” said Patrick De Haan, head of petroleum analysis at Gas Buddy. He warned that if refineries were forced to retain diesel, they would likely scale back production to avoid storage surpluses, which would inadvertently restrict the refining of gasoline and ultimately drive prices higher.
For Canada, while a U.S. ban would not cause a domestic supply shortage—as Canada is a net exporter of diesel—the impact would be felt directly at the pumps. Diesel is the lifeblood of the Canadian economy, powering the heavy machinery used for harvests and the fleets that transport food and goods nationwide.
With global refining capacity constrained by regional wars—including the precarious situation in the Strait of Hormuz and the Red Sea—experts maintain that market intervention by the U.S. would only exacerbate a strained global supply chain, leaving consumers in Canada and abroad to pay the price.
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