President Trump has declared his support for a potential ban on diesel fuel exports amid record-breaking prices at the pump.
“I’ve said let’s not send out the diesel. We make a lot of diesel … I’ve called for it. I’ve called for it within my people,” Trump said, as quoted by Reuters, on the sidelines of this week’s UN General Assembly.
The comment follows a statement by Treasury Secretary Scott Bessent that the administration was mulling over the effectiveness of such a ban on exports, and whether it would be partial or total. The national U.S. average for diesel hit $6.5276 on Tuesday, according to AAA.
The idea of a ban on diesel exports emerged earlier this month, with Rep. Tim Burchett tabling a bill to that effect last week. Senate Majority Leader John Thune has backed the proposal. Energy Secretary Chris Wright and Interior Secretary Doug Burgum oppose it as a bad idea that would ultimately backfire, but the very fact that some legislators considered an export ban suggests the supply situation is pretty grim even for the world’s largest oil producer.
“American fuel should stay home with Americans,” Alaska Senator Dan Sullivan said in a statement on Tuesday, as quoted by Reuters. “The cost of diesel is just too damn high. I’m calling for a temporary pause of American diesel exports so that we can rebuild our reserves ahead of winter and put American and Alaskan families first.”
With the U.S. president signaling support for such a move, the chances of a ban have improved. Trump earlier blamed the surge in U.S. diesel prices on Ukraine and its drone attacks on Russian refineries, calling on President Zelensky to stop the attacks so prices can come down.
As a result of the refinery attacks, Russia has instituted a ban on its own diesel fuel exports, contributing to a major squeeze as diesel exports from the Middle East get compromised by the U.S. and Israeli war with Iran.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com
- Oil Prices Reverse Course as Traders Watch US-Iran Diplomacy
- Norway’s Arctic Oil Pitch Falls Flat in Brussels
- US Gasoline, Distillate Inventories Continue to Fall as Crude Stocks Hold
