US President Trump evaluating possibility of diesel export ban
Following record increases in diesel prices in the US, the administration has put the option of halting diesel exports on the table.
US President Donald Trump stated that he is evaluating the option of banning diesel exports, but noted that this step could have negative impacts on gasoline prices.
Diesel Exports and Price Impacts
US President Donald Trump stated during a White House press briefing that he is considering the issue of banning diesel exports. Trump mentioned that he discussed the matter with Energy Secretary Chris Wright and Interior Secretary Doug Burgum, and that officials conveyed the ban could help with diesel prices but might drive up the prices of certain other products.
Russia and Global Supply Issues
Trump emphasized that the issue with diesel prices stems from developments in Russia rather than the Middle East. Noting that refineries in Russia have been taken offline, Trump stated that what is happening between Russia and Ukraine constitutes the biggest problem in terms of diesel.
Department of Energy Statements
US Energy Secretary Chris Wright stated that they have been working on this issue for weeks and anticipate that prices will drop meaningfully in the coming days. Wright noted that there is a supply squeeze due to losses in Russia, the Middle East, and China, and that new diesel supply will enter the market from Europe.
Diesel Prices in the US
According to American Automobile Association data, the average gallon price of diesel in the US reached a record level of $6.53 on September 22, before being recorded at $6.41 as of September 30.