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Trump Rejects Call for Diesel Export Ban Despite High Prices

6:09 PM ETConfirmed

Business Desk

In Short: The Trump Administration on Wednesday rejected calls from some Republican Senators to ban diesel exports, despite record-high diesel prices hitting American farmers and truckers.

The Trump Administration on Wednesday rejected calls from some Republican Senators to ban diesel exports, despite record-high diesel prices hitting American farmers and truckers.

Energy Secretary Chris Wright said, “The blunt tool of banning diesel exports definitely doesn't work.” He noted that such a ban would lead to less fuel production, tighter supplies, and rising costs for American families.

Republican Senator Chuck Grassley of Iowa and others have pushed for a temporary halt on diesel exports to lower costs for consumers ahead of the midterm elections.

Wright and the White House denied that an export ban was in the works, even as President Trump and Treasury Secretary Scott Bessent had hinted at the possibility earlier.

Industry groups, including the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers, urged President Trump to reject the idea of fuel export restrictions.

These groups warned that a ban would force refiners to cut production, not only of diesel but also of gasoline, exacerbating supply issues and driving up prices.

The U.S. currently supplies about 20% of the world’s diesel exports, and a ban could tighten global diesel markets further, especially in regions like the Northeast that depend on imports.

Energy experts and analysts have cautioned that an export ban could have unintended consequences, potentially pushing up fuel costs domestically and internationally.

Patrick De Haan, head of petroleum analysis at GasBuddy, said, “If diesel exports get banned, [gasoline] prices could rise toward record levels.”

The U.S. produces about 5.3 million barrels per day of distillate fuel, while domestic demand averages about 3.6 million barrels per day, leaving a surplus that is currently exported.

Blocking diesel exports would strand roughly 1.5 million barrels per day of diesel, forcing refiners to cut overall fuel production, including gasoline, and increase America's reliance on imported fuel.

What this adds

Background

What's confirmed

• The Trump Administration on Wednesday rejected calls from some Republican Senators to ban diesel exports, despite record-high diesel prices hitting American farmers and truckers.
• Energy Secretary Chris Wright said, “The blunt tool of banning diesel exports definitely doesn't work.” He noted that such a ban would lead to less fuel production, tighter supplies, and rising costs for American families.
• Republican Senator Chuck Grassley of Iowa and others have pushed for a temporary halt on diesel exports to lower costs for consumers ahead of the midterm elections.
• Wright and the White House denied that an export ban was in the works, even as President Trump and Treasury Secretary Scott Bessent had hinted at the possibility earlier.
• Industry groups, including the American Petroleum Institute and the American Fuel & Petrochemical Manufacturers, urged President Trump to reject the idea of fuel export restrictions.
• These groups warned that a ban would force refiners to cut production, not only of diesel but also of gasoline, exacerbating supply issues and driving up prices.
• The U.S. currently supplies about 20% of the world’s diesel exports, and a ban could tighten global diesel markets further, especially in regions like the Northeast that depend on imports.
• Energy experts and analysts have cautioned that an export ban could have unintended consequences, potentially pushing up fuel costs domestically and internationally.
• The U.S. produces about 5.3 million barrels per day of distillate fuel, while domestic demand averages about 3.6 million barrels per day, leaving a surplus that is currently exported.
• Blocking diesel exports would strand roughly 1.5 million barrels per day of diesel, forcing refiners to cut overall fuel production, including gasoline, and increase America's reliance on imported fuel.

What's still developing

• But this peak was 4.2 million bpd lower than a year ago, with losses spread across the Middle East, Russia, and crude importing economies in Asia, the International Energy Agency (IEA) said in its monthly report for September.
• “If we pull back, other countries will step in, our influence will shrink, and our adversaries will gain ground. America’s energy exports are a source of economic and geopolitical strength,” the association said in the letter.
• What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… As the national average diesel price soared to a record $6.52 per gallon, the Trump Administration sent mixed signals this week about restricting U.S.
• Rumors and reports of a diesel ban sparked vehement opposition from the U.S.
• Russia has banned diesel exports until the end of September and is likely to extend the ban through October.
• “I’ve said let’s not send out the diesel. We make a lot of diesel. I’ve called for it,” Trump said late Tuesday at the U.N. General Assembly in New York.
• “Restricting U.S. exports would hit an already-tight market with another supply shock,” said API CEO Mike Sommers.
• Donald Trump is very focused on so-called U.S. energy dominance, and an export ban flies in the face of that, said oil forecaster Dan Pickering, founder of the Pickering Energy Partners consulting and research firm.
• The last time the U.S. did briefly ban exports was during the 1970s Arab oil embargo when the U.S. was much less of an energy exporter.
• Keep the diesel at home and prices will fall, sparing farmers, truckers, and inflationary pressures on all Americans.
• Refineries would then reduce their operations, not only cutting diesel output, but gasoline and jet fuel supplies as well because there aren’t individual switches for each fuel type.
• Pivot Bio CEO Chris Abbott joined FOX Business’ Taylor Riggs on " Mornings with FOX Business " to discuss how rising diesel and fertilizer costs are pressuring farmers and threatening to push food prices higher.

Sources

• Al Jazeeralink
• American Fuel & Petrochemical Manufacturerslink
• BBClink
• Crude Oil Prices Today | OilPrice.comlink
• Fox Businesslink
• Al Jazeeralink
• BBClink
• Interchangefinanciallink
• Turkiyetodaylink
• Fxstreetlink
• Profitlink
• Fortunelink
• Kyivpostlink
• The Indian Expresslink
• Kyivindependentlink
• Theatlanticlink
• Forbes — video link