Long term, a ban would make matters worse, experts say

President Donald Trump takes a question from a reporter as he meets with Ukraine's President Volodymyr Zelensky on the sidelines of the United Nations General Assembly in New York on Tuesday. Trump said he's called for a ban on diesel exports.

President Donald Trump says his administration is considering a ban on diesel exports, amid skyrocketing prices for the fuel.

"I've called for it within my people," Trump said in response to questions as he met Ukrainian President Volodymyr Zelensky at the United Nations in New York on Tuesday. "I've said let's not send out the diesel."

The president said a decision is coming "fast, one way or the other," as Treasury Secretary Scott Bessent said officials are weighing whether such a ban is feasible and whether a full or partial ban would be effective.

Trump is facing pressure from rising prices and from members of his own party, including Senate Majority Leader John Thune.

Experts have told MarketWatch that a U.S. ban on diesel exports might bring some relief to diesel prices in the short term - but the longer-term consequences of such a ban could potentially be "devastating."

Rebecca Babin, a senior energy trader and managing director at CIBC Private Wealth, told MarketWatch a ban would be very negative for U.S. refiners and push global energy prices higher. Such a move would hit U.S. prices as well, since the country doesn't domestically produce all of the fuel and crude products it needs.

The current average for diesel prices is $6.53 a gallon, up from $6.27 a week ago, according to AAA. A year ago, it was $3.69.

-Robert Schroeder