Export Ban Would Mean Higher Gas Prices for Americans

Restricting refined-product exports could force U.S. allies to make friends with Russia

By Kyle Isakower. Mr. Isakower is senior vice president of energy and regulatory policy for the American Council for Capital Formation. Excerpts:

"As my colleagues and I find in a new study, a ban on refined-product exports would increase prices at the pump for most Americans.

The problem is that the U.S. doesn’t have enough infrastructure to transport all the refined products from the major Gulf-region refineries to the East and West coasts. If some of the refined-product inventory were stranded rather than exported by ship via Gulf ports, refineries would be forced to cut production. Consequently, the East and West coasts would still need to import gasoline and diesel from a global market that would have less supply because of the U.S. export ban. All this would lead to higher prices on and near the East and West coasts, affecting two-thirds of Americans."