Trump administration considers potential diesel export ban
Donald Trump is reportedly seriously considering a ban on diesel exports amid concerns over global supply. While some analysts warn such a move could increase global prices and domestic gasoline costs, reports indicate the administration is weighing various policy options.
First reported 11 hours ago · latest update 1 hour agoCHICAGO – US President Donald Trump said he is still looking “very seriously” at implementing a US ban on diesel exports to combat high prices, even as others in his administration continue to focus on other possible steps.
“That can often times lead to a little bit of an increase on gasoline for cars, so we’re looking at it very seriously – we may do it,” Trump told a Fox News reporter on Sept 27 while attending the Presidents Cup golf tournament final near Chicago.
Several farm-state lawmakers have urged Trump to limit US diesel exports during the peak of the fall harvest season, as global fuel markets reel from the disruption to flows in the critical Strait of Hormuz and Ukrainian attacks on Russian refineries.
The US has emerged as the supplier of last resort to the world, with diesel exports surging to a weekly record near 2 million barrels a day in August.
National Economic Council director Kevin Hassett, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer have been analysing the ramifications of a potential short-term ban on US diesel exports over the last week, underscoring the seriousness of the administration’s consideration of the idea.
Oil chief executives and industry groups have pushed instead for suspending the federal diesel excise tax, saying it would ease prices without the drawbacks of an export ban.
But that has been met with internal debate about how to waive the tax – especially with the House of Representatives in a pre-election recess.
Diesel powers farm equipment, freight trains, trucks and delivery vans.
US retail prices hit a record last week and are averaging about US$6.50 a gallon, adding to voter anxiety over living costs before November’s midterm elections.
Energy Secretary Chris Wright said last week that the administration is working with refiners on voluntary export curbs as an alternative to a government-imposed ban.
Some companies are already adding contractual protections in the event a pause on diesel shipments overseas prevents deliveries to foreign buyers, people with knowledge of the situation told Bloomberg News on Sept 25.
In the event of a ban, US diesel prices would be widely expected to plummet, at least in the short run.
A halt would leave America’s allies, including Brazil and Britain, urgently needing to secure fuel. BLOOMBERG
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Trump says he’s ‘very seriously’ looking at diesel export ban
This comes even as others in his administration continue to focus on other possible steps.
11 hours agoTrump ‘very seriously’ considering diesel export ban as global supply crunch worsens
Analysts warn an export ban could backfire, pushing up global diesel prices and potentially triggering higher U.S. gasoline prices as refiners adjust.
1 hour ago