Gulf Coast Diesel Export Ban Risks Higher Gas Prices and Less Investment

A proposed diesel export ban could idle much of Gulf Coast refining, push up gasoline prices, and discourage the investment needed to ease supply over time. Refineries cannot make diesel without also producing gasoline and jet fuel in fixed proportions, so halting diesel exports would force shutdowns of over half of Gulf Coast capacity. This would cut gasoline supply by about 2,100 thousand barrels daily, potentially raising gasoline prices. If export restrictions occur once, refiners may expect repeats, reducing investment in new capacity. That would shrink future supply and ultimately keep prices higher over the long term.