Key facts
- President Donald Trump is considering a ban on U.S. diesel exports.
- Trump acknowledged a ban could negatively impact gasoline prices.
- Treasury Secretary Scott Bessent urged European countries to release diesel reserves.
- Britain has discussed potential coordinated release of diesel reserves with European partners.
- US exports 1.2 to 1.5 million barrels of diesel daily.
- UK diesel prices hit record highs this week.
President Donald Trump is weighing a ban on U.S. diesel exports, a move aimed at lowering domestic prices amid global shortages and record highs. However, the administration acknowledges that such a ban could inadvertently push gasoline prices higher, a concern echoed by Goldman Sachs analysts.
Trump stated he is considering the ban "very seriously" and may ask European countries to release some of their diesel reserves. Treasury Secretary Scott Bessent urged European partners to "immediately" make additional supplies available. Britain has held talks with European partners about potentially releasing diesel reserves in response to any U.S. ban.
The U.S. is a significant global supplier of diesel, exporting between 1.2 and 1.5 million barrels per day. Experts warn that cutting off these shipments could further pressure international prices. Diesel prices in the UK have reached record highs this week, hovering just under 200p per litre, according to the RAC.
Trump has argued that retaining surplus diesel domestically would provide relief to drivers and businesses ahead of the U.S. midterm elections. Conversely, David Fyfe, chief economist at Argus Media, cautioned that restricting U.S. supply would likely cause international prices to surge. Diesel is harder to refine than gasoline and is critical for the haulage and agriculture industries, making demand difficult to reduce. The UK, in particular, relies heavily on imports for its diesel needs.