US President Donald Trump said on Sunday that he is "very seriously" considering a ban on diesel exports, a move that would mark one of the most drastic interventions in American fuel markets in years.
Speaking to a Fox News reporter while attending the Presidents Cup golf final near Chicago, Trump said he was weighing the step to combat record-high prices. "That can often times lead to a little bit of an increase on petrol for cars, so we're looking at it very seriously — we may do it," he said, according to Bloomberg.
The idea has gained traction with farm-state lawmakers, who have urged the administration to limit exports during the peak of the fall harvest season. Global fuel markets are under strain from disrupted flows through the Strait of Hormuz and Ukrainian attacks on Russian refineries. The United States has become a supplier of last resort for the world, with diesel exports surging to a weekly record of nearly 2 million barrels a day last month. Retail diesel prices hit a record last week, averaging about $6.50 a gallon, adding to voter anxiety over living costs ahead of November's midterm elections.
White House weighing options — and pushback
National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer have spent the past week analysing the ramifications of a potential short-term ban, underscoring how seriously the administration is treating the idea, Bloomberg reported.
But the proposal faces resistance even inside the administration. Energy Secretary Chris Wright said last week that the White House is working with refiners on voluntary export curbs rather than a government-imposed ban. "Are we going to make adjustments with diesel? I think so. But no, I don't think you will see a blanket ban on diesel," Wright said. Bloomberg reported on Saturday that the White House had separately assured Senator Ted Cruz it would not ban diesel exports — though Trump, as president, remains the final decision-maker.
Oil executives and industry groups have instead pushed for suspending the federal diesel excise tax, worth about 24 cents a gallon, warning that an export ban could damage long-term investment in refineries. GasBuddy analyst Patrick De Haan said a ban would be "not good at all for long term investments in refineries" and warned refiners could shift production toward jet fuel.
Senate Majority Leader John Thune has said the United States may explore a ban, while analysts note that a halt would force buyers including Brazil and Britain to scramble for alternative supplies.
Sources:
- "Trump Says He's 'Very Seriously' Looking at Diesel Export Ban" — Bloomberg Law
- "Trump says he is considering a diesel export ban 'very seriously'" — The Hindu BusinessLine
- "Trump says he's 'very seriously' looking at diesel export ban" — The Business Times
Speaking to a Fox News reporter while attending the Presidents Cup golf final near Chicago, Trump said he was weighing the step to combat record-high prices. "That can often times lead to a little bit of an increase on petrol for cars, so we're looking at it very seriously — we may do it," he said, according to Bloomberg.
The idea has gained traction with farm-state lawmakers, who have urged the administration to limit exports during the peak of the fall harvest season. Global fuel markets are under strain from disrupted flows through the Strait of Hormuz and Ukrainian attacks on Russian refineries. The United States has become a supplier of last resort for the world, with diesel exports surging to a weekly record of nearly 2 million barrels a day last month. Retail diesel prices hit a record last week, averaging about $6.50 a gallon, adding to voter anxiety over living costs ahead of November's midterm elections.
White House weighing options — and pushback
National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer have spent the past week analysing the ramifications of a potential short-term ban, underscoring how seriously the administration is treating the idea, Bloomberg reported.
But the proposal faces resistance even inside the administration. Energy Secretary Chris Wright said last week that the White House is working with refiners on voluntary export curbs rather than a government-imposed ban. "Are we going to make adjustments with diesel? I think so. But no, I don't think you will see a blanket ban on diesel," Wright said. Bloomberg reported on Saturday that the White House had separately assured Senator Ted Cruz it would not ban diesel exports — though Trump, as president, remains the final decision-maker.
Oil executives and industry groups have instead pushed for suspending the federal diesel excise tax, worth about 24 cents a gallon, warning that an export ban could damage long-term investment in refineries. GasBuddy analyst Patrick De Haan said a ban would be "not good at all for long term investments in refineries" and warned refiners could shift production toward jet fuel.
Senate Majority Leader John Thune has said the United States may explore a ban, while analysts note that a halt would force buyers including Brazil and Britain to scramble for alternative supplies.
Sources:
- "Trump Says He's 'Very Seriously' Looking at Diesel Export Ban" — Bloomberg Law
- "Trump says he is considering a diesel export ban 'very seriously'" — The Hindu BusinessLine
- "Trump says he's 'very seriously' looking at diesel export ban" — The Business Times
