Trump Backs Louisiana Governor’s Call for Diesel Export Ban

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Trump Backs Louisiana Governor's Call for Diesel Export Ban

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Louisiana Governor Jeff Landry has proposed a 90-day moratorium on U.S. diesel exports in an effort to reduce soaring domestic fuel prices. As of September 22, 2026, the national average for diesel reached a record $6.53 per gallon, a substantial increase from $3.69 a year prior. Governor Landry attributes these high prices to current U.S. policies that he claims prioritize global markets, leading to a record amount of diesel being sent to Europe.

The elevated diesel costs are having a significant impact across various sectors, particularly agriculture and trucking. Richard Fontenot, President of the Louisiana Farm Bureau, highlighted on September 23, 2026, that these all-time high prices are “crushing” the agriculture industry, especially during the critical harvest season. He noted that farmers are experiencing double their historical expenses for fuel, directly affecting their bottom line. In response, Governor Landry issued an executive order on September 23, 2026, temporarily allowing Louisiana farmers and timber harvesters to use less expensive, non-taxable dyed diesel in highway vehicles to provide immediate relief.

However, the proposal for a diesel export ban has met with resistance from oil and gas industry officials and economists. They argue that such a ban could actually lead to higher prices for both diesel and gasoline. The Louisiana Mid-Continent Oil and Gas Association, for instance, stated that without the capacity to redirect supply, halting exports would force refineries to reduce overall production, subsequently decreasing gasoline output as well. Experts also warn of potential disruptions to U.S. supply chains and possible retaliatory measures on U.S. agricultural products if an export ban were implemented. The U.S. currently exports approximately 25% of its refined diesel, primarily to Latin America and Europe.

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