SACRAMENTO, CA – The Western States Petroleum Association (WSPA) has underscored its strong objection to the federal government adopting a proposed 90-day federal ban on diesel exports. WSPA is part of a large coalition of energy leaders who are urging rejection of the policy.

“If this ban is adopted, it will add more pressure to a system already at a breaking point due to the decisions of California policymakers,” said WSPA President and CEO Jodie Muller.

“WSPA has long advocated for energy affordability across the West Coast. A diesel export ban comes with serious risks of driving prices even higher. Logistical constraints, a high output of renewable diesel and low-carbon fuel mandates leave our market uniquely vulnerable to the disruptions this policy would cause. The West Coast already refines more diesel than it consumes – a mandate to store that excess fuel rather than export it would likely require refiners to dial back their operations, risking higher prices for gasoline, jet fuel and other refined products,” said Muller.

In urging the Trump Administration to reject the proposed diesel export ban, WSPA highlighted several reasons why the proposal would likely hurt consumers in several critical ways:

• Higher Prices at the Pump: Restricting trade disrupts global markets, spikes wholesale costs and risks driving retail fuel prices higher for West Coast drivers.
• Logistical Realities: The West Coast is a net exporter of diesel with limited infrastructure to store excess fuel. Banning diesel exports would cause storage tanks to fill rapidly, at which point, refiners would be forced to throttle back operations, including production of gasoline and jet fuel.
• Refinery Vulnerability: Forcing refiners to operate under artificial trade restrictions threatens their economic viability. Facing trapped inventory and negative margins, facilities may choose to cut processing runs or advance maintenance projects that require shutdowns. This risks permanently reducing regional fuel supplies and undermining an industry that contributes billions to the economy.

“We share the goal of keeping energy affordable,” said Muller. “A diesel export ban will isolate the West Coast market even further and raise the potential for a retaliatory export ban on gasoline to California, which would threaten supplies and punish consumers with higher costs and reduced energy security.”

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