Calls for U.S. Diesel Export Suspension Amid Rising Fuel Prices

Alaska Senator Dan Sullivan has urged a pause on U.S. diesel exports in response to increasing fuel prices. Gasoline rates recently soared to more than $26 a gallon in a remote Alaskan village. President Donald Trump expressed support for this idea, exploring the feasibility of a temporary restriction.

Sullivan suggested the moratorium remain until the end of the conflict in Iran, allowing energy exports to resume through the Strait of Hormuz. This action could help replenish national diesel reserves before winter, potentially lowering costs. “American fuel should stay home with Americans,” Sullivan emphasized.

The average U.S. diesel price hit a record $6.53 per gallon on Tuesday, while Alaska’s rate averaged $6.67 per gallon. The national average has risen nearly 31 cents in the past week, as reported by AAA and GasBuddy.

Patrick De Haan from GasBuddy noted that diesel prices increased in every state, with five states experiencing over 50-cent rises per gallon. He attributed this to Russian oil refinery strikes affecting global supplies and additional pressure from Great Lakes refinery issues.

Future diesel price trends will rely on international developments. De Haan pointed out that recent Houthi attacks and U.S.-Iran tensions add to the uncertainty.

On August 26, Newsweek reported Shungnak, Alaska drivers paying $26.82 per gallon due to local transportation issues. Fuel had to be flown in after low water levels restricted barge access. The 2022 price reached $14 per gallon, as reported by the Alaska Beacon.

Trump echoed Sullivan’s export pause call, suggesting, “Let’s not send out the diesel.” Treasury Secretary Scott Bessent confirmed they are investigating the feasibility of export restrictions concerning refining capacity.

The American Petroleum Institute (API) responded that restricting exports could worsen existing refining challenges and increase consumer costs. API CEO Mike Sommers stated that the solution lies in “more supply and more flexibility” rather than limitations.

API highlighted that Gulf Coast refineries produce surplus diesel, with exports being crucial to maintaining production levels. A restriction could lead refiners to reduce diesel, gasoline, and jet fuel output, further tightening supplies.

Support for a diesel export pause is growing among Republicans. Iowa Representative Ashley Hinson and Senator Chuck Grassley advocated for measures to relieve truckers and farmers. Senate Majority Leader John Thune recognized that reopening the Strait of Hormuz would offer the best relief, but supported a ban as a sensible interim solution.

Republican Senate candidate Mike Rogers called for suspending U.S. diesel exports amid the ongoing Iran conflict, advocating for prioritizing domestic energy support. The push for restrictions follows disruptions in global oil markets, partly attributed to the conflict around the Strait of Hormuz, elevating global energy prices.

Contact Newsweek editors on this story: Edward T. Cummins.