Trump expresses support for a temporary U.S. ban on diesel exports

President Donald Trump said Wednesday he supports a temporary ban on diesel exports from the United States as the U.S. economy struggles with fuel prices, according to a report from Bloomberg.

Sen. Chuck Grassley, R-Iowa, on Saturday proposed a temporary ban on diesel exports from the United States, and on Tuesday called on Trump to support the ban through executive action. Grassley said this ban would help the family farmers who fuel and feed the world. In the proposal, Grassley suggested that so-called Big Oil companies could sell diesel in the United States at a cheaper price than they do overseas.

What are the concerns about this ban on diesel exports? The president and CEO of the American Petroleum Institute, Mike Sommers, warned in a social media post that pausing the export of diesel would trade one problem for another. Sommers said if refineries have to cut runs, they also produce less gasoline and jet fuel, which would push those prices even higher. He said the solution is more flexibility, not new restrictions.

The Heritage Foundation, a nonprofit conservative think tank, on Tuesday released a statement opposing the proposed ban, saying it would raise prices, weaken energy security, discourage investment, and undermine America’s reliability as an energy supplier.

What is causing the high prices of diesel? The ongoing war in Iran and the conflict over control of the Strait of Hormuz has contributed to the rising fuel prices. U.S. Senate Majority Leader John Thune said he was open to the idea of limiting diesel exports, according to a report by The Hill. But he added the best solution would be for Trump to find a way to reopen the Strait of Hormuz, through which a quarter of the world’s seaborne oil supplies once traveled, as soon as possible. Iranian threats have slowed shipping traffic through the strait significantly.