5 hrs ago
White House Weighs Diesel Export Ban as Prices Surge
U.S. fuel prices have risen sharply, especially for diesel.
President Donald Trump is considering stopping some diesel from being exported to other countries.
The idea is meant to leave more fuel in the United States and possibly lower prices.
Treasury Secretary Scott Bessent said officials are studying whether a complete or partial ban would work.
Diesel supplies in the country have fallen since the war with Iran began.
However, oil companies say a ban could make them lose foreign customers and money.
Some energy officials also oppose the idea.
They warn that refineries might make less diesel, gasoline, and jet fuel, which could make prices even higher.
President Donald Trump said he is considering restricting diesel exports to curb soaring U.S. fuel prices.
Treasury Secretary Scott Bessent said officials are assessing whether a full or partial export ban would work.
U.S. commercial diesel inventories have fallen 11% since the war with Iran began, while weekly exports have risen 31%.
Oil companies and several administration officials oppose a ban, warning it could reduce refinery output and raise prices for gasoline and jet fuel.
The average U.S. on-highway diesel price reached a record $2.78 higher than a year earlier in the week ended September 21.
- Who
- President Donald Trump, Treasury Secretary Scott Bessent, U.S. oil companies, and other administration officials.
- What
- The White House is considering a full or partial ban on diesel exports to address rising fuel prices.
- Where
- The policy would affect diesel exports from the United States and the domestic fuel market.
- When
- The proposal is under consideration; the reported diesel-price data cover the week ended September 21.
- Why
- Supporters say restricting exports could increase fuel available in the United States and help curb prices; opponents say it could reduce refinery output and raise prices.
Supporters of Export Restrictions
Opponents of Export Restrictions
Effect on domestic prices
Supporters of Export Restrictions
President Donald Trump and more Republicans see restricting exports as a way to keep more diesel in the United States and curb soaring fuel prices.
Opponents of Export Restrictions
The oil industry and opposing administration officials argue that a ban could cause refineries to process less crude, ultimately raising diesel, gasoline, and jet-fuel prices.
Impact on refiners
Supporters of Export Restrictions
Supporters are examining whether a full or partial restriction could address the supply problem while prices and exports remain high.
Opponents of Export Restrictions
Industry analysts say refiners could lose overseas customers and revenue, leading them to reduce production rather than increase domestic supply.
Administration position
Supporters of Export Restrictions
Treasury Secretary Scott Bessent said the administration is studying the feasibility of a ban.
Opponents of Export Restrictions
Energy Secretary Chris Wright, Interior Secretary Doug Burgum, and National Energy Dominance Council executive director Jarrod Agen are opposed, according to an administration official.
Key facts
- Diesel price
- The average U.S. on-highway diesel price reached a record high in the week ended September 21.
- Annual price increase
- The average price was $2.78 per gallon higher than a year earlier.
- Weekly price increase
- The price rose by more than 24 cents from the previous week.
- Diesel inventories
- Commercial U.S. diesel inventories fell 11% since the start of the war with Iran.
- Diesel exports
- U.S. diesel exports rose 31% on a weekly basis.
- Policy options
- Officials are examining both full and partial diesel-export bans.
- Opposition
- The oil industry, Energy Secretary Chris Wright, Interior Secretary Doug Burgum, and Jarrod Agen oppose the idea, according to the report.
Sources
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