Why a U.S. Diesel Export Ban May Not Lower Prices

Weeks away from the midterm elections, President Trump is considering banning or restricting exports of diesel fuel to the rest of the world.It’s an effort to bring down surging prices that have become a major concern for many voters.An export ban, as some Republican lawmakers and candidates see it, would lower costs by keeping more diesel at home.

That would reduce fuel costs for farmers, truckers and other businesses.But many energy experts say a ban would not lower prices for long and could ultimately backfire.That’s because a ban could prompt U.S.

oil refineries to make less diesel, which would cause the fuel’s price to rise again.Restrictions on diesel exports could even reduce the supply of gasoline, jet fuel and other fuels that are made alongside diesel in refineries.Diesel cost an average of $6.51 a gallon on Thursday, up from $3.69 a year ago, according to the AAA motor club.

Prices began rising after Israel and the United States started attacking Iran nearly seven months ago, severely disrupting the global energy system.Ukrainian attacks on Russian refineries have also driven up the price of diesel and other fuels.The president could use emergency powers to limit or ban diesel exports.Experts agree that Mr.

Trump could restrict exports under some of the broad emergency powers he holds.But it is not clear whether he could enact a complete export ban on his own, said Jason Bordoff, the founding director of the Center on Global Energy Policy at Columbia University.Congress gave the president authority to impose restrictions on crude oil exports for up to one year in cases of national security and other emergencies, including if the country is suffering from sustained shortages or if U.S.

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