President Donald Trump has backed calls to restrict U.S. diesel exports amid record-high prices at the pump, but GasBuddy analyst Patrick De Haan warned that the move may not result in price declines beyond the Gulf Coast.
Patrick De Haan is ‘Really Nervous’
In a post on X on Tuesday, De Haan expressed his concern about Trump’s possible export ban on diesel, which made him “really nervous.” The analyst said that “while some price declines could happen in Gulf states, its unlikely that relief will spread much beyond that.”
Gulf states in the U.S. are located bordering the Gulf of Mexico/America and include Florida, Texas, Louisiana, Mississippi and Alabama. “Politicians imagine prices plummeting in all states, and that’s a significant disconnect from reality,” the analyst said in the post.
The analyst was also asked for his take on whether the diesel ban could have implications for Canadian oil being imported into the U.S. De Haan said that an export ban could complicate the situation with Canada.
“USMCA may cover this and that opens another can of worms too,” he said. The analyst added that the export ban was a “very complex issue disguised as something easy and fast to do.” Notably, the U.S. and Canada were engaged in trade talks last month covering Trump’s tariffs, but the talks fell through with both parties shifting the blame on the other.
Diesel Prices in Gulf States
The Gulf states in the U.S., along the Gulf of Mexico/America comprise five states: Texas, Louisiana, Mississippi, Alabama and Florida. According to the data collected by the American Automobile Association (AAA), the national average price of diesel in the U.S. was $6.5276/gallon on Tuesday.
In Texas, residents paid $5.9653/gallon for diesel on Tuesday on average. Louisiana residents paid $6.0272/gallon while drivers in Mississippi paid $6.0583/gallon for diesel. In Florida, the average price of diesel was $6.2577/gallon, while pumps in Alabama commanded a price of $6.1594/gallon for diesel on average.
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