Diesel hits record $6.53 as Trump weighs export ban before midterms
Diesel hit a record $6.53 a gallon this week, and every carrier moving freight is already feeling it in the surcharge line. The number matters more than usual because President Trump is openly weighing a ban on US diesel exports to pull domestic prices down before the November 3 midterms.
The export ban
Trump told reporters in the Oval Office late Wednesday that he and his team debate the pros and cons of a diesel export ban every day, and he admitted it could have a negative impact on gasoline. He hasn't decided. Goldman Sachs flagged the risk earlier in the week.
Washington is leaning on Europe to avoid pulling that trigger. US officials told Germany and France to draw down emergency diesel inventories to ease global prices or face the ban, three people close to the talks told Reuters. One European source said Washington asked the EU to release 120 million barrels of diesel over the next six months. The US supplied about half of Europe's diesel imports in August, so a ban would hit European supply hard. It could also backfire at home. Texas refiners sell a lot of distillate abroad and could get squeezed if export markets close.
What haulers pay
For fleets, the math is bad. Diesel and gasoline both jumped in September, and at $6.53 the surcharge pass-through lags the pump, so carriers eat the gap until contracts reset. Shippers push back on every surcharge bump, and spot-market haulers have the least room to pass it on.
Indiana off-road relief
Indiana Governor Mike Braun approved temporary diesel relief for farmers, letting them run untaxed off-road diesel for ag work through harvest. State Representative Jim Pressel of Rolling Prairie led the request in a letter signed by 51 other lawmakers. It's narrow and harvest-only, and it doesn't touch on-road fuel, but it signals how fast the tax question moves once diesel gets this high. Connecticut Republicans are already calling for gas and diesel tax cuts.
Propane autogas
For fleets eyeing an exit from diesel, the Propane Autogas Research Program is offering $7,500 per eligible vehicle and up to $10,000 for new refueling site prep. Participants run the trucks in normal duty cycles and file quarterly data on fuel use and upkeep. At current diesel prices the payback looks better than it did a year ago.
What to watch
Whether Trump pulls the export trigger or lets the pressure on Europe do the work. If the ban lands, domestic diesel could ease while refiners lose export margin. Watch the surcharge reset dates in your contracts, and watch whether more states follow Indiana on off-road relief.