US Congressman Ro Khanna to Introduce Bill Banning Gasoline Exports Amid Price Spikes
Amid historic surges in gasoline prices triggered by the US-Israeli war on Iran, California congressman Ro Khanna is set to introduce legislation on Tuesday that would prohibit the export of gasoline during periods of significant price increases. The Democrat argues that keeping domestic fuel supplies at home could alleviate financial burdens for American consumers facing escalating costs at the pump.
Legislation Details and Rationale
Khanna's proposed bill would activate a ban on US shipments of refined gasoline to other countries whenever national average gas prices reach or exceed $3.12 per gallon. In an interview, Khanna stated, "The country is crying out for a new energy policy that doesn't have us subject to the whims of the profits of big oil companies." He emphasized that the Iran war has created an unprecedented disruption to fuel supply, as reported by the International Energy Agency, with crude oil costs surpassing $100 per barrel this week, directly driving up gasoline prices.
Currently, Americans are paying over $4 per gallon for gasoline, with prices in Khanna's home state of California exceeding $6.50. The congressman highlighted that the US became a net exporter of gasoline in the 2010s and is now the world's largest exporter of motor gasoline as of 2024, making export controls a potential tool for domestic price relief.
Political Context and Challenges
Despite the urgency, Khanna acknowledged that his proposal is unlikely to pass Congress, citing Republican opposition to measures that contradict big oil companies. However, he views the bill as a symbolic effort to draw attention to how the Iran war impacts Americans economically, not just through geopolitical consequences. "The war in Iran has really created an energy shock in America, and this is the time for us to point out why wars of choice are morally bad, but also why they hurt Americans who are struggling to pay the bills," Khanna remarked.
Economic Impact and Corporate Profits
The fuel price shocks have severely affected American households while benefiting major oil corporations. According to an analysis by Rystad Energy, domestic fossil fuel producers could gain an additional $63 billion in profits due to the war, with share prices for these companies rising significantly since the conflict began. Khanna criticized this trend as "profiteering" and has previously introduced a windfall tax bill with Senator Sheldon Whitehouse, proposing an excise tax on large fossil fuel companies during profit surges to fund rebates for US taxpayers.
Broader Energy Policy and Renewable Push
In addition to the export ban and windfall tax, Khanna advocates for a shift toward renewable energy to enhance energy security and reduce vulnerability to geopolitical oil shocks. He called for increased investment in solar, wind, geothermal, battery storage, and electric vehicles, stating, "We need to use this moment to call for renewable energy as energy security." Experts note that China stands to benefit from the Iran war due to its dominance in clean technology supply, while continued reliance on fossil fuels, as promoted by figures like Donald Trump, risks ceding leadership in the global energy transition.
Public Sentiment and Future Outlook
Khanna emphasized that the war is broadly unpopular among Americans, who prioritize domestic economic stability and peace. "Americans don't want another costly war. They want good jobs at home and peace abroad," he said, urging a focus on competing with China and investing in American manufacturing rather than sustaining high war expenditures. As fuel disruptions accelerate some countries' shift away from fossil fuels, the debate over energy policy continues to intensify, highlighting the interconnectedness of global conflicts, economic pressures, and environmental sustainability.
