Gas prices could soar if the U.S. bans diesel exports, economists say
Summary
The U.S. government is thinking about banning diesel fuel exports to lower high prices right now. But experts warn that if the ban lasts a long time, it could actually make gasoline prices go up because diesel and gasoline are made together in refineries.Key Facts
- President Trump said the administration is seriously considering a temporary ban on diesel exports.
- Diesel prices recently reached a record high of $6.53 per gallon.
- The U.S. exports about 1.5 million barrels of diesel daily, more than it consumes.
- Goldman Sachs predicts the ban could lower diesel prices by 25 cents per gallon at first.
- If the ban lasts too long, diesel storage would fill up, causing gas prices to rise by 30 cents per gallon each additional week.
- Refineries produce diesel and gasoline together, so reducing diesel exports would also reduce gasoline production.
- Industry groups warn that a diesel export ban would force refiners to cut overall fuel production, raising gasoline prices.
- Analysts say a long-term ban could lead to higher fuel costs for American consumers despite aiming to lower diesel prices.
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