Key facts
- The oil industry is concerned the White House may ban diesel exports.
- Industry leaders warn a ban would force refineries to cut production, reducing gasoline and jet fuel supply.
- The American Petroleum Institute argues a ban would worsen prices for consumers and farmers.
- Farm lobby pressure is reportedly pushing the White House to consider export restrictions.
The oil industry is growing anxious that the White House may suspend diesel exports, a move advocated by the agricultural sector, to address rising fuel prices. Industry executives and groups like the American Petroleum Institute warn that such a ban would be counterproductive, potentially leading to higher gasoline prices and reduced overall fuel production.
"If you start putting barriers on flows, pretty quickly you will reduce the production," said Wright, who believes a ban would lead to "less supply." Mike Sommers, CEO of the American Petroleum Institute, echoed these concerns on X, stating that an export ban would "make the problem worse, not better — for consumers, farmers and the broader U.S. economy." He explained that without global buyers, Gulf Coast storage could fill rapidly, forcing refineries to cut their runs, which would impact the production of gasoline and jet fuel in addition to diesel.