WASHINGTON—Today, The Heritage Foundation issued the following statement opposing new proposals to ban or restrict U.S. diesel exports:

“Proposals to ban or restrict U.S. diesel exports are counterproductive. Export bans would not lower energy costs, especially beyond the immediate term, and would instead raise prices, weaken energy security, discourage investment, and undermine America’s reliability as an energy supplier.  

 

“Export bans do not create more fuel. American refineries are already running near capacity, and diesel is produced alongside gasoline, jet fuel, and other products. If refiners lose access to export markets, they will store what diesel they can, then cut refinery runs over time. That would reduce overall fuel supply and put upward pressure on prices, including for gasoline.

 

“U.S. diesel exports also support allies in Europe and Latin America and help counter the influence of less reliable suppliers. Pulling American fuel from global markets would weaken America’s position as the world’s most dependable energy partner. Moreover, if this bad precedent is set, investment and production in the United States will suffer for years to come. That is not energy dominance.  

 

“Some regions of the United States would remain exposed to higher prices because of infrastructure and transportation constraints. Parts of the East and West Coasts depend on fuel imports and are not supplied directly by Gulf Coast refineries. Restricting exports would therefore do little to shield many American consumers from global market conditions while also reducing overall fuel production.

 

“The better path is to expand supply through permitting reform, relief from Renewable Fuel Standard and Jones Act requirements, new infrastructure, and greater refining capacity. Restricting exports would repeat past policy mistakes by distorting markets and discouraging the investment needed to keep energy affordable and secure.”

Derrick Morgan, executive vice president at The Heritage Foundation, added:

“In fairly short order, a diesel export ban would reduce overall supply, getting far worse the longer this policy lasts. The answer is more production and less regulation, not restricting exports.”