Key facts
- US Energy Secretary Chris Wright opposes a diesel export ban, stating it would increase gasoline and jet fuel prices.
- Morgan Stanley analysts warned that a ban could force US refiners to cut utilization rates, impacting gasoline production.
- US gasoline prices could spike further from record levels if a ban is enacted.
- As of September 23, the national average regular retail gasoline price was $4.4744 per gallon.
- US diesel prices have jumped to $6.52 per gallon.
- President Trump and Treasury Secretary Scott Bessent had hinted at the possibility of an export ban.
US Energy Secretary Chris Wright has publicly opposed calls for a ban on US diesel exports, arguing that such a measure would backfire by increasing gasoline and jet fuel prices. Wright stated that restricting exports would leave refiners with excess diesel inventories, forcing them to cut refinery output, which would ultimately drive up costs for consumers and businesses.
Wright's comments put him at odds with President Trump, who had signaled support for the idea amid record diesel prices in the US and Europe. Treasury Secretary Scott Bessent has been assigned to assess the feasibility of such a ban.
European diesel's premium to Brent crude jumped to a record over $95 a barrel on Wednesday, according to Bloomberg. The US has become Europe's main overseas supplier of diesel, with American exports surging to a weekly record near 2 million barrels a day last month.
The American Petroleum Institute cautioned against the move, stating that restricting exports is not a solution to high prices and could instead result in reduced refinery runs, global economic damage, and potentially higher US prices. Morgan Stanley analysts warned that a ban could force US refiners to cut utilization rates because they would run out of storage for the diesel within just a few weeks. Reduced refinery utilization would crimple gasoline production, too, because the fuels are produced together. As a result, US gasoline prices would spike further, from already record-high levels for this time of year. As of September 23, the national average regular retail gasoline price was $4.4744 per gallon, according to AAA data.