Grassley Urges Diesel Export Ban As Global Fuel Crisis Stokes Resource Nationalism Fears

Sen. Chuck Grassley urged the U.S. to ban diesel exports, arguing that high prices are “killing farmers’ income” after diesel reached $6.57 in Iowa. He cited global refining problems and AAA data showing the national average diesel price could cross $6.50 per gallon. Capitol Hill chatter has grown after Senate Majority Leader John Thune said last Tuesday he was “open to exploring” a possible export ban. Supporters expect more diesel at home and lower wholesale prices near ports, but analysts warn the relief would be uneven and could harm U.S. refining incentives. Interior Secretary Doug Burgum said restricting exports likely wouldn’t reduce consumer prices and could trigger retaliation. Bloomberg Intelligence strategist Mike McGlone cautioned a diesel crisis could drive an economic shock reminiscent of 2008.