admin
On Fox Business’s Varney & Co. this week, economist Steve Moore told viewers a diesel export ban is the wrong tool to fight high pump prices. Instead, Moore urged the Biden administration to temporarily suspend ethanol blending rules under the Renewable Fuel Standard (RFS), saying it could shave roughly 30–35 cents off a gallon of gasoline. His message was clear: don’t break the market with export limits — tweak the rules that add cost to refining and let consumers breathe.
Moore’s pitch: Suspend ethanol rules, not ban diesel exports
Moore argued a diesel export ban would hurt refiners and fail to lower prices, and he offered an alternative that sounds simple: waive RFS ethanol requirements for a spell so refiners face lower compliance costs. He also suggested states cut their gas taxes temporarily until prices ease. That’s the kind of pragmatic, market-minded thinking conservatives should applaud — start with fixes that keep supply flowing and don’t spook global markets.
Why an export ban would be risky
Industry analysts and trade groups have been ringing alarm bells about diesel-export curbs. Modelers say a sudden ban could fill U.S. storage, force refiners to cut runs, and actually lower gasoline output — which would push some fuel prices up, not down. If you want a policy that doesn’t have unintended consequences, a halfway-sighted export ban ranks low on the list. It’s the kind of heavy-handed intervention that sounds good on a podium but wrecks refinery economics in real life.
The RFS reality check: less of a silver bullet than Moore claimed
To be fair to Moore, RFS rules and costly RIN credits do add complexity and cost to refining. But government studies and independent analyses show changes to ethanol mandates usually move pump prices by far less than the 30–35 cents per gallon Moore cited. EPA, CBO, EIA and GAO work finds effects are often modest and vary by region. So yes, suspending blending requirements could help, but it’s not a guaranteed giant rebate at the pump — and it won’t fix every supply problem that drives prices higher.
Bottom line: sensible fixes, not market-scrambling bans
We want lower gasoline and diesel prices. That means sensible steps: temporary, targeted RFS relief where it helps, state tax relief, and avoiding blunt export bans that can make things worse. If Washington wants headlines, it will threaten bans. If politicians want results, they will pick careful, market-respecting moves that ease costs without breaking the supply chain. Call it common-sense economics — and a reminder that policymakers should be gardeners, not arsonists, when tending the energy market.
