Senate Majority Leader John Thune (R-SD) said he is willing to consider a ban on diesel exports to help ease the run-up in prices caused by supply constraints from the conflicts in the Middle East and Ukraine.
“We’ll be looking at any proposal that is a viable solution, but I do think if we have the supply in this country and we’re exporting it right now, that might be one way of getting at it,” Thune told reporters at the Capitol. “If that would take pressure off of prices, you know, I’m open to exploring it.”
Republicans and the Trump administration are grappling with how to ease record-high diesel prices ahead of the midterm elections in November.
Last week, diesel prices hit $6 per gallon for the first time ever. Diesel is a key commodity, as it fuels trucks, trains, and other heavy machinery. As of Tuesday, the national average for diesel sat at $6.26 per gallon, according to AAA.
The Trump administration has not endorsed a ban on diesel exports. Interior Secretary Doug Burgum said on Monday that a ban on oil or fuel exports would be unlikely to help lower prices for consumers.
“We would consider an export ban if we thought that actually might lower prices, but that’s not the case,” Burgum told reporters at a G20 meeting on energy in Houston.
The Democratic nominee for the U.S. Senate in Texas, James Talarico, called on his Republican opponent, state Attorney General Ken Paxton, to support the suspension of the federal diesel tax.
Thune told reporters suspending the federal fuel tax is a “short-term” solution and would “create holes” in the Highway Trust Fund, which relies on federal gas tax revenue.
Thune noted an export ban on diesel makes more sense, but added that reopening the Strait of Hormuz would be the ideal solution.
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The war with Iran and the conflict between Russia and Ukraine have driven up oil prices, which are now above $100 per barrel. As of Tuesday, Brent crude peaked at around $108 per barrel, while West Texas Intermediate hit more than $105.
Ukraine has targeted Russian refineries, and the Kremlin has halted exports of diesel. Russia is generally responsible for about 1 in 9 barrels of global diesel production. President Donald Trump on Monday said that Russia and Ukraine have agreed to stop targeting key energy infrastructure.