Gas prices could soar if the U.S. bans diesel exports, economists say

President Trump said he is “very seriously” considering a ban on diesel exports. But such a move could drive U.S. gas prices sharply higher, analysts said.

President Trump said he is "very seriously" considering a ban on diesel exports. But such a move could drive U.S. gas prices sharply higher, analysts said. A move by the U.S. to temporarily halt diesel exports amid record-high prices would initially lower costs, but a prolonged ban could drive up domestic gasoline prices, according to Goldman Sachs. President Trump on Sunday told reporters his administration is "very seriously" considering a ban on diesel exports. Calls to restrict exports of U.S.-refined diesel have picked up in recent weeks, mostly from Republican lawmakers, as a lever they believe will help lower prices. Diesel hit a record $6.53 a gallon on Sept.

22, and has only eased slightly since then, slipping to $6.45 a gallon on Monday, according to AAA data. Supporters of an export ban note that U.S. energy companies refine more diesel than Americans can consume, resulting in net exports of about 1.5 million barrels a day, according to S&P Global Energy. By halting those exports, the thinking goes, domestic diesel prices would drop due to a flood of fresh supply, lowering costs for farmers, commercial trucking companies and thousands of other businesses that rely on the fuel. Goldman Sachs estimated that a diesel export ban could cut prices by about 25 cents a gallon while refiners have storage space for