Alaska’s Republican Senator Dan Sullivan has called for a temporary stop to U.S. diesel exports due to rising fuel prices. This comes after reports of gasoline in a remote Alaska village selling for over $26 per gallon. President Donald Trump expressed support for the idea as the administration considers the feasibility of such a restriction.
Sullivan proposed a moratorium on exports until the conflict in Iran ends and energy exports through the Strait of Hormuz resume. He believes keeping more American diesel at home could help replenish reserves ahead of winter and reduce costs. “American fuel should stay home with Americans,” he stated. “The cost of diesel is just too high.”
Diesel prices reached a record average of $6.53 per gallon nationwide, according to AAA, and $6.67 in Alaska. The national average has increased nearly 31 cents in a week, as reported by GasBuddy. Patrick De Haan from GasBuddy noted that diesel prices rose in every state, with five states seeing increases of over 50 cents per gallon. He attributed this to ongoing strikes on Russian oil refineries and regional refinery issues.
The situation in Shungnak, Alaska, is particularly severe, with drivers paying $26.82 per gallon. Financial expert Michael Ryan explained that local transportation problems contributed to the price. Fuel needed to be flown in after low water levels prevented barge delivery. The village has faced high fuel costs for years; gasoline reached $14 per gallon in 2022.
When questioned about Sullivan’s proposal, Trump mentioned he had advocated for a temporary diesel export halt as well. Treasury Secretary Scott Bessent, at the United Nations General Assembly, stated the administration is evaluating the feasibility of export restrictions within the context of refining capacity.
The American Petroleum Institute (API) warned that restricting U.S. diesel exports could exacerbate refining challenges. API President Mike Sommers commented that Americans are suffering from high diesel costs due to global refining disruptions. He advised increasing supply and flexibility instead of implementing new restrictions.
Several Republican politicians support the proposal. Representative Ashley Hinson and Senator Chuck Grassley, both from Iowa, urged the administration to halt exports temporarily. Senate Majority Leader John Thune indicated that reopening the Strait of Hormuz could best address the diesel price surge.
These calls for a diesel export embargo emerge amid disruptions to global energy supplies due to the U.S.-Israeli conflict with Iran. The Strait of Hormuz, critical for oil shipments, faces severe disruptions, adding to energy price hikes.