California Democrat Ro Khanna plans to introduce legislation Tuesday that would prohibit the export of gasoline whenever domestic prices spike, a direct response to fuel costs that have surged past $4 a gallon across much of the country.
The proposal targets what Khanna calls the contradiction of current energy policy. The US has become the world's largest exporter of refined gasoline, yet Americans are bearing the brunt of global energy shocks. His bill would halt gasoline shipments abroad whenever national average prices hit $3.12 per gallon or higher.
The trigger for action is clear. A major military escalation involving Iran has created what the International Energy Agency describes as the largest fuel supply disruption on record. Crude oil has topped $100 a barrel this week, pushing gasoline prices upward with no immediate relief in sight.
Khanna argues that diverting exports back to domestic markets could ease consumer pain. "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 told the Guardian.
The congressman is not naive about his legislation's prospects. He acknowledged that Republicans, wary of antagonizing the fossil fuel industry, are unlikely to support the measure. But he views the bill as a vehicle for a broader Democratic message: that military involvement abroad carries real costs at home.
"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 said.
The oil industry has emerged as a clear winner from the crisis. Major producers have seen share prices climb since the conflict began, with market researchers at Rystad Energy estimating the industry could rack up an additional $63 billion in profits. Khanna characterizes this as pure profiteering.
To address windfall gains, Khanna is pushing a companion measure alongside Rhode Island Senator Sheldon Whitehouse that would impose an excise tax on large fossil fuel companies when profits surge. The revenue would fund rebate checks sent directly to American taxpayers, offsetting gas pump costs.
Khanna has also revived calls for accelerated investment in renewable energy infrastructure. Solar, wind, geothermal power, and battery storage could shield Americans from future geopolitical oil shocks while reducing carbon emissions, he argues. The shift would also position the US to compete in what he sees as the defining industrial race of the coming century.
Instead, Khanna warns that a doubled-down commitment to fossil fuels during the crisis effectively cedes clean energy leadership to China, which dominates manufacturing of solar panels, wind turbines, and batteries.
This is not Khanna's first push on these ideas. He proposed similar export bans and windfall taxes in 2022 when Russia's invasion of Ukraine triggered another energy shock. The persistence of the proposal signals Democratic frustration with what they see as an avoidable cycle of foreign conflict driving domestic inflation.
Author James Rodriguez: "Khanna's betting that Americans are finally ready to hear that energy independence and fiscal responsibility should go hand in hand, even if Congress isn't."
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