A White House official on Wednesday publicly denied a news report claiming the United States was preparing a 90-day ban on diesel exports intended to rein in surging fuel costs. The denial came amid record diesel prices and continued discussion inside the administration about measures to increase domestic supplies.
Diesel, a fuel widely used by farms, trains and trucks, has reached record levels above $6.50 per gallon as deliveries of oil and refined products have been tightened, with officials linking the tighter flows to wars in Iran and Ukraine. Those higher diesel costs are a political concern for President Donald Trump as he faces the midterm elections.
US Energy Secretary Chris Wright had earlier said that instituting a flat ban on diesel exports would be counterproductive. Wright warned such a move would not work and could push up prices for gasoline and jet fuel. He also said the United States was discussing voluntary measures as an alternative to an outright prohibition.
The report that prompted the denial named a 90-day export ban as the proposed response. In response to that report, Wright asserted that no one was considering a blanket ban on diesel shipments. He emphasized that the ongoing discussions were focused on getting more diesel into the United States while maintaining robust flows of other refined products.
"What’s being discussed is what’s the most efficient way to get more diesel into the United States of America, and continue maximum flows of gasoline and jet fuel," Wright said, declining to provide additional specifics.
Officials declined to offer further details about the voluntary measures being considered or the specific options under discussion. The exchange underscores the tension between attempts to control domestic fuel prices and the potential for policy steps to produce unintended effects in related fuel markets.
Context and implications
- Diesel prices have hit record highs above $6.50 per gallon, tightening costs for sectors that rely on diesel such as agriculture, rail and trucking.
- Officials say constrained deliveries of oil and fuel products are linked to conflicts in Iran and Ukraine, contributing to the price pressure.
- The administration is weighing responses to the price surge but officials say a flat 90-day export ban is not under active consideration.