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You’ve likely heard about high diesel prices as the U.S. war with Iran continues to keep the Strait of Hormuz closed to oil shipments coming out of the Middle East. Some Republicans in Congress, and President Donald Trump, have said they want to explore banning the export of diesel fuel from the U.S. as a way to try to help.
I asked Vidya Mani, a supply-chain researcher at the University of Virginia, to explain all the ways the price of diesel affects almost every other price consumers pay for food, energy, household needs and other products. And I asked her whether a ban on diesel exports would help much.
She explains all those economic interconnections, as well as how banning exports might help in some places in the U.S., but would definitely hurt badly elsewhere in the country.
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