Top Democrats are calling the GOP plan to stop diesel exports a “gimmick.” They say it is an “inadequate substitute for ending the war in Iran.” This comes as fuel costs hit new highs across the country. The Washington Times reported that the opposition is loud and clear. They argue the real issue is the war, not the flow of fuel.
Meanwhile, a growing number of GOP candidates want a temporary ban on diesel exports. President Donald Trump himself backs the idea. He told reporters on Tuesday, “I’ve said let’s not send out the diesel.” He added that we make a lot of diesel and it could help. He stated that while substantial diesel production might slightly influence standard car fuel, he has not called for it.
The numbers are hard to ignore. As of Wednesday, the mean price for diesel is $6.52 per gallon. This is according to AAA. In some states, prices have jumped more than 80% from a year ago. The Washington Examiner noted these sharp increases in the hardest-hit areas. The ABC News source added that the price is up 73% since before the war with Iran started.
Industry groups warn that a ban might backfire. The American Petroleum Institute says it could raise gas prices by shifting production. They argue the market is complex. However, the Washington Examiner reports that the Energy Secretary said a “blanket ban” won’t happen. This leaves the plan in a bit of limbo. It is unclear if the White House wants a strict ban or just voluntary caps.
Farmers are feeling the pinch right now. Joseph Brusuelas, serving as chief economist at RSM, explained to ABC News that diesel pricing impacts every sector of the economy requiring transport. Without cheap fuel, food costs go up for everyone.
Adam Hamilton, a candidate from the Democratic party, informed backers that a war has driven diesel prices upward. He shared a story about farmers who said, “We don’t know if we’re going to keep the farm.” Elaine Luria, another Democrat, cited the high prices at a roundtable in Virginia Beach. She pointed out how the cost hurts local families and businesses.
Support for the ban is not the same for every Republican. Sen. Chuck Grassley from Iowa is the most prominent voice for the proposal. Other backers include Rep. Ashley Hinson in Iowa, Mike Rogers in Michigan, and Sen. Dan Sullivan in Alaska. But not all Republicans agree. Those in oil-rich states often oppose the move. The Washington Examiner says many are still on the fence.
This year, the U.S. has consumed 4.1 million daily barrels of diesel. It has exported 1.5 million per day so far. This data comes from S & P Global Energy. The debate continues as the price of fuel keeps climbing. President Trump indicated he backs the step, but the Energy Secretary said a total ban is off the table.
