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US diesel export ban proposal targets record fuel prices
Diesel prices are near a record $6.45 per gallon on average, and the US exports about 1.2 to 1.5 million barrels per day, with 60% to 70% going to Latin America.
A threatened US diesel export ban has entered the spotlight as surging fuel prices strain drivers ahead of the midterm elections, with President Donald Trump saying he would back the move, according to BBC Business. Diesel prices are hovering near a record $6.45 per gallon on average, helped by the ongoing US-Israel war with Iran and tight global supplies.
BBC Business reports that the proposal is designed to shield US consumers from rising diesel costs. The US is a leading diesel supplier, with domestic refineries producing roughly four to five million barrels per day and Americans consuming about 3.6 million barrels daily.
With 1.2 to 1.5 million barrels per day exported, the US plays a key role in the global diesel market, BBC Business adds. Between 60% and 70% of exported fuel goes to Latin America, where countries such as Mexico, Brazil, Chile, and Ecuador rely heavily on American diesel.
While supporters argue the ban would protect domestic consumers, experts cited by BBC Business warn it could create major economic ripple effects both in the US and abroad if implemented.