Republican Backs Diesel Export Ban in Red State That Saw $26 Gas Price - Newsweek

Alaska Republican Senator Dan Sullivan is calling for a temporary halt to U.S. diesel exports as fuel prices surge, weeks after gasoline in one of the state’s remote villages soared to over $26 a gallon.

President Donald Trump said Tuesday he backs the idea, as the administration examines whether a temporary restriction would be feasible.

Sullivan proposed a moratorium until the conflict in Iran ends and energy exports resume flowing through the Strait of Hormuz, arguing that keeping more American diesel at home could help rebuild reserves ahead of winter and lower costs.

“American fuel should stay home with Americans,” he said in a statement Tuesday. “The cost of diesel is just too damn high.”

Diesel hit a record $6.53 per gallon average Tuesday nationwide, according to AAA, and was $6.67 in Alaska. The national average has risen nearly 31 cents over the past week, according to GasBuddy.

“Diesel rose in every state, with five states seeing increases exceeding 50 cents per gallon,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in a statement. He added that continued strikes on Russian oil refineries are tightening global diesel supplies, while regional refinery issues are adding pressure in the Great Lakes.

Any broader shift in diesel prices will depend heavily on overseas developments, with new Houthi attacks and fresh U.S.-Iran escalations leaving the outlook uncertain, De Haan said.

On August 26, Newsweek reported that drivers in Shungnak, Alaska, were paying $26.82 per gallon. Financial expert Michael Ryan told Newsweek that the extreme price was driven in part by local transportation problems, with fuel having to be flown in after low water levels prevented barges from reaching the community.

The village has faced unusually high fuel costs for years, with gas reaching $14 per gallon in 2022, according to the Alaska Beacon.

When asked about Sullivan's proposal Tuesday, Trump said he had also called for a temporary halt to diesel exports.

"I've called for that too. I've said, 'Let's not send out the diesel.' We make a lot of diesel," Trump told reporters on the sidelines of the United Nations General Assembly.

"That could have a little bit of an effect on regular automobile gasoline because when you do that, it's sort of a flow. It's a balance."

Treasury Secretary Scott Bessent, who was seated near Trump, said the administration was considering whether an export restriction would be feasible. “We’re examining that—whether it’s feasible in terms of the overall refining capacity and whether a full or partial ban would work.”

Trump and Bessent indicated the administration would move quickly in deciding whether to impose a restriction.

The American Petroleum Institute (API) said Tuesday that restricting U.S. diesel exports would worsen refining challenges and further sting consumers.

“Americans are hurting from rising diesel costs driven by an unprecedented disruption to global refining capacity,” API President and CEO Mike Sommers said. “We understand the administration is looking at every option to deliver relief, but restricting U.S. energy exports would only compound the problem.”

Sommers added that the answer is “more supply and more flexibility,” rather than new restrictions.

API said Gulf Coast refineries produce more diesel than the region consumes, making exports an important outlet for maintaining high refinery production. The group said limiting exports could force refiners to cut production of diesel, gasoline and jet fuel, tightening supplies even more.

Several other Republicans have expressed support for the proposal this week.

Representative Ashley Hinson, a Republican from Iowa running for U.S. Senate, late Tuesday also called for a pause in diesel exports. “The House should return to DC immediately to work to pause diesel exports, suspend the gas tax, fully unleash E15 and biodiesel, and work on a diesel relief program for truckers and farmers,” she wrote on X.

Senator Chuck Grassley, another Iowa Republican, has also called for a temporary diesel export embargo. “I encourage President Trump to put a temporary embargo on diesel exports through executive actions,” he said on the Senate floor Tuesday. “It will help family farmers who feed and fuel the world.”

Senate Majority Leader John Thune has said an export ban “probably” makes more sense as a way to address high diesel prices, though reopening the Strait of Hormuz would be the “best thing.”

Republican U.S. Senate candidate Mike Rogers is also calling for a temporary embargo on U.S. diesel exports, saying the war in Iran needs to end to bring costs down. “Here’s what we can do now: place a temporary embargo on Diesel exports. American energy should provide relief to American families first,” he wrote on X Monday.

The push comes as disruptions to global energy supplies linked to the U.S.-Israeli war on Iran have pressed oil and fuel markets. The Strait of Hormuz, a key route for global oil shipments, has faced severe disruptions since the conflict began, contributing to higher global energy prices.

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