Diesel Export Ban Faces Industry Backlash as API Warns of Disruption
Trump's proposed diesel export ban drew immediate fire from API and major refiners, who said it would raise prices and deepen a global refining crisis.
President Trump's proposed ban on diesel exports drew immediate opposition from the oil and gas industry, led by the American Petroleum Institute. On September 23, 2026, API CEO Mike Sommers said the proposal would exacerbate rising diesel costs, not lower them. The group issued a press release calling the ban a threat to fuel markets and refinery operations, warning it would deepen an already strained global refining crisis.
Major refiners including Chevron and Phillips 66 joined the pushback as a coalition of chief executives launched a lobbying effort against the plan, according to the API release. The industry argument hinges on a basic logic: blocking exports would trap diesel supply inside the U.S. during a period when domestic production cannot keep up with demand, because U.S. refineries are configured to export surplus diesel and import gasoline. Cutting off the export outlet, Sommers said, would force refiners to cut runs, tightening supply and raising prices at the pump.
The global refining backdrop makes the timing sensitive. Margins have compressed across the sector in recent months as new capacity in the Middle East and Asia comes online and European plants struggle with high natural gas costs. The API warned that a U.S. export ban would compound those pressures, potentially accelerating shutdowns of smaller domestic refineries that depend on export revenue to stay profitable.
The lobbying campaign is ongoing, with no decision expected before the midterm elections, people familiar with the matter said. Trump's proposal is part of a broader push to lower energy costs, but the industry response underscores the tension between short-term political goals and the complex economics of fuel supply chains.
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