Key facts
- The White House denied considering a ban on U.S. diesel exports.
- Energy Secretary Chris Wright stated that restricting exports would lead to higher gasoline and jet fuel prices.
- President Trump had previously signaled support for restricting diesel exports.
- The national average diesel price reached $6.5276 per gallon on Tuesday.
- The American Petroleum Institute warned that export restrictions could lower U.S. fuel production and damage the global economy.
The White House on Wednesday denied considering a ban on U.S. diesel exports, a move that had been signaled as a possibility by President Donald Trump and Treasury Secretary Scott Bessent amid soaring fuel prices. Energy Secretary Chris Wright stated that the administration's focus is on increasing domestic supply, warning that an export ban would be a "blunt tool" that could backfire by raising gasoline and jet fuel prices and reducing refinery output.
Diesel prices have reached record highs, with the national average exceeding $6.50 per gallon. Wright argued that restricting exports would leave refiners with excess diesel inventories, forcing them to cut output and ultimately tightening supplies of other fuels. The American Petroleum Institute echoed these concerns, cautioning that export restrictions could lower U.S. fuel production, damage the global economy, and harm consumers and refining capacity.
Globally, the market is already tight due to lost shipments from the Middle East and Russian export curbs. The U.S. has become Europe's main overseas supplier, with American exports surging to a weekly record near 2 million barrels a day last month. Analysts warn that removing U.S. diesel from the market could strand as much as 1.5 million barrels a day of output, potentially leading to reduced refinery runs and a larger supply problem down the road. Kpler noted that there is no real replacement for U.S. export volumes, leaving Latin America and Northwest Europe particularly exposed.