Diesel prices have climbed to record levels across the United States, squeezing farmers, truckers and businesses.
Diesel prices have climbed to record levels across the United States, squeezing farmers, truckers and businesses while raising concerns that higher transportation costs could eventually show up in the prices Americans pay for everyday goods.
The national average for diesel reached $6.53 per gallon Tuesday, up roughly 77% from a year earlier, according to AAA data cited by CBS News. The surge has prompted lawmakers in Washington to consider possible ways to increase domestic supply, including restricting U.S. diesel exports.
But Thomas Aiello, vice president of federal affairs at the National Taxpayers Union, joined The National News Desk to warn that an export ban could produce unintended consequences and potentially make the country's longer-term fuel supply problems worse.
"I think we're all frustrated by the price of gasoline and the price of diesel," Aiello said. "And that's why the administration is looking for options to try and address that."
The idea behind restricting exports is straightforward: If the United States keeps more domestically produced diesel at home, supporters argue, additional supply could provide relief for American consumers.
Some Republican lawmakers have pushed the Trump administration to consider restrictions as record diesel costs hit farmers, trucking companies and other businesses. The administration has so far expressed concerns about an export ban, while President Donald Trump has publicly entertained the idea.
Aiello argues the economics are more complicated.
"There's a lot of concern, even within the Secretary of Energy level, that an export ban won't actually decrease prices," Aiello said.
He said one concern is that preventing refiners from selling excess diesel abroad could eventually cause them to cut production, reducing the amount of diesel and other fuels entering the market.
"Over the long term, this could lead to higher prices because if refineries would produce less oil, it would produce less gasoline and diesel," Aiello said. "Which would mean higher prices, which is something nobody wants to see right now."
Energy analysts have raised similar concerns. S&P Global reported that an export ban could strand roughly 1.5 million barrels per day of diesel in the United States and potentially force refiners to significantly reduce crude processing, affecting production of gasoline and other petroleum products along with diesel.
The debate is unfolding against the backdrop of an unusually tight global diesel market.
Disruptions involving the Middle East and Russia have reduced international supplies, while problems affecting traffic through the Strait of Hormuz have contributed to higher crude oil and refined-product prices. Middle Eastern diesel exports to Europe were headed toward a six-year low in September, according to S&P Global.
U.S. refiners have responded by increasing production. The Energy Information Administration reported that disruptions in the Middle East helped drive U.S. distillate exports to record levels during the second quarter of 2026, averaging about 1.56 million barrels per day.
Aiello argued that the country's underlying challenge is refinery capacity and that increasing supply is a better long-term strategy than restricting exports.
"If we want to decrease prices, we need to increase the supply of diesel that comes online," Aiello said.
Aiello said during the interview that the United States "hasn't built a refinery in 50 years."
The EIA says the newest U.S. refinery began operating in Galveston, Texas, in 2022, but it has a relatively small capacity of 45,000 barrels per day. The newest refinery with significant downstream unit capacity is Marathon's Garyville, Louisiana, facility, which began operating in 1977 and has since expanded substantially. Existing refineries have also increased capacity through expansions and upgrades.
Overall U.S. refining capacity has recently moved in the opposite direction. Operable atmospheric crude oil distillation capacity fell by more than 250,000 barrels per day between January 2025 and January 2026, leaving the country with about 18.2 million barrels per day of capacity at the beginning of this year.
Aiello said permitting requirements and regulatory hurdles can make adding major new energy infrastructure difficult and expensive.
"A large problem is because of that government red tape that makes it harder to build," Aiello said. "We need to address the root cause of this problem. That's how we can bring down diesel prices."
He called for permitting reform that would shorten approval timelines for refineries, pipelines and other infrastructure.
"This is that government red tape that you need approval to build anything from a pipeline to a highway to a refinery," Aiello said.
Aiello said he is encouraged by bipartisan discussions in Congress aimed at changing the permitting process.
"We need to make sure that, one, we cut down the time it takes to build those refineries and get those approvals, and then, of course, address the ability to sue to stop these buildings from being built," Aiello said.
But even if Congress enacted sweeping permitting changes, Aiello acknowledged that new refinery capacity would not provide immediate relief for families and businesses paying record diesel prices today.
"There's nothing that Congress or the administration can really do to lower prices today," Aiello said.
He pointed instead to restoring global energy flows as one of the biggest factors that could relieve the current supply crunch.
"We need the Strait of Hormuz open again, and we need that flow of oil to go through and the flow of refined petroleum products as well," Aiello said.
The EIA has similarly identified disruptions through the Strait of Hormuz as a major factor affecting energy markets. Its September outlook assumes that a return toward normal tanker traffic would allow refineries in Saudi Arabia and Kuwait to increase distillate exports and help ease global diesel margins. The agency warned that if Middle Eastern flows remain constrained through the end of 2026, global distillate prices could remain higher than currently forecast.
Aiello said Washington still has some options to consider while waiting for global conditions to improve.
"We could restart a couple of those refineries in California," Aiello said, arguing the administration could consider using federal authorities to support additional production.
He also suggested policymakers could consider additional releases from the Strategic Petroleum Reserve.
"We think those are much more conservative and free-market solutions than banning the sale of exports of diesel at the moment," Aiello said.
The stakes extend far beyond what drivers see posted at gas stations. Diesel powers much of the country's trucking, agriculture, construction and freight industries, meaning sustained increases can work their way through supply chains and add to the cost of moving food and other products around the country.
For now, U.S. refineries are already operating at high utilization rates. EIA data show utilization reached 96.5% in June, underscoring how difficult it can be to rapidly increase domestic production when much of the existing system is already running near capacity.
Aiello said that makes addressing the country's long-term capacity constraints critical even if those changes cannot solve today's price spike.
"If we want to decrease prices," Aiello said, "we need to increase the supply of diesel that comes online."
