If you thought gasoline was expensive, that’s nothing compared to diesel. Here in Louisiana, diesel is now averaging more than $6 a gallon. Even though most of you likely do not drive a vehicle that runs on diesel fuel, that high cost of diesel will be passed on in the form of higher prices on groceries and other goods. In an effort to get diesel prices under control, Governor Landry is calling for a 90-day pause on diesel exports. In an interview with CNBC, Landry blames Washington for allowing diesel prices to spiral out of control.
“What you’re seeing is bad Washington policies that allow the supply of our energy to go to those global markets and not have enough of that fuel on supply,” Landry said.
Landry notes that the U.S. is sending a record amount of diesel to Europe.
“Americans are subsidizing Europe’s problems because of the war in Ukraine and the issues in Iran, and Europe has done nothing to help America in either one of those two positions; but yet, they’re sucking the energy out of America and making American citizens pay for it,” Landry noted.
Landry says while the overall solution needs to be wide-ranging, his temporary export moratorium is a start.
“Putting in place a 90-day export ban certainly would create a supply of diesel in the country, which would cause diesel prices to fall,” Landry explained.
However, not everyone is on board with Landry’s idea. The Louisiana Mid-Continent Oil and Gas Association says with pipelines for domestic diesel transportation already at maximum capacity, halting exports of diesel would only force refineries to reduce production, which would decrease the production of gasoline.
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