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Home – Oil & Energy News – 3 Reasons a Ban on Diesel Exports Won’t Work

3 Reasons a Ban on Diesel Exports Won’t Work

Jack Spencer | Derrick Morgan

On the latest episode of The Heritage Foundation podcast “The Power Hour,” host Jack Spencer talks energy with Heritage Foundation Executive Vice President Derrick Morgan. In this excerpt, Morgan explains why a potential ban on diesel exports to lower U.S. diesel prices is a bad idea.

This transcript has been edited for clarity.

Jack Spencer: So, what brings us here today for this special episode?

Derrick Morgan: Well, diesel prices are very, very high. There are a lot of reasons for that. And as part of that and the fact that you have an election coming up in less than two months probably has something to do with it too. You’ve got people that are really hurting out there. You’ve got harvest season in the ag community, where people are trying to power up their combines and everything else with diesel fuel. You do have winter coming around the corner with home heating oil and so forth.

People are very, very concerned about high diesel prices, so they’re looking for some way to lower them. And unfortunately, in my view, they’re looking at a potential option of stopping diesel exports in a way to keep diesel here, thinking that will lower prices. But there’s a lot of negative blowback that we could see if we do that.

Spencer: You laid it out good. I mean, diesel prices are high. And there’s both sort of, from a public perspective, they want the politicians to do something. It’s election season. And banning exports seems on its face at least to be a perfectly appropriate thing to do. Keep it here. But a lot of people have tried this before. There are always these negative unintended consequences that occur. Walk us through some of that. Why........

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