A White House official has denied claims that the U.S. is considering a 90-day ban on diesel exports to address rising fuel prices.
Energy Secretary Chris Wright dismissed a Politico report suggesting the U.S. was preparing to enforce a 90-day ban on diesel exports, Reuters reported. This alleged ban was supposedly aimed at mitigating record fuel prices that heavily affect farms, trains, and trucks.
Wright told the publication, “What’s being discussed is what’s the most efficient way to get more diesel into the United States of America, and continue maximum flows of gasoline and jet fuel.”
Wright previously said that the export ban would be ineffective and could raise gasoline and jet fuel prices by forcing refiners to cut production when storage capacity fills, according to a prior Reuters report.
At the time, Wright said the Trump administration is exploring voluntary measures with refiners to increase diesel supply, with policy announcements expected in the coming days. No final decision has been made.
White House did not immediately respond to Benzinga’s request for comments
The Reported Proposal
This news comes in the wake of a POLITICO report on Wednesday that the Trump administration was preparing a 90-day ban on U.S. diesel exports to lower energy prices ahead of the midterm elections, despite internal disagreements and opposition from the oil industry.
Wright told energy CEOs that a 90-day diesel export ban was likely, prompting several executives to contact the White House to oppose the measure. Fuel producers warned the move could provide short-term relief but lead to higher prices later, the report added.
The war in Iran and Ukraine’s strikes on Russian refineries have driven U.S. diesel prices to record highs. AAA data showed diesel at $6.52 a gallon on Wednesday, up about 91 cents from a month earlier and up around $2.83 from a year ago.
Diesel Ban Faces Pushback
President Donald Trump had earlier backed restricting U.S. diesel exports due to record-high fuel prices. “I’ve said let’s not send out the diesel. We make a lot of diesel,” the President said. Meanwhile, Treasury Secretary Scott Bessent said that the administration was weighing a full or partial ban.
However, GasBuddy analyst Patrick De Haan warned that a potential ban makes him “really nervous.” He said any price declines would likely be limited to Gulf states, while broader U.S. consumers may see little relief. De Haan called the expectation of nationwide price drops a “significant disconnect from reality.”
Echoing the same, American Petroleum Institute CEO Mike Sommers said banning U.S. diesel exports could backfire by pushing domestic diesel prices below global levels and squeezing refinery margins. With 54% of U.S. refining capacity on the Gulf Coast producing a diesel surplus, export restrictions could leave storage tanks full because pipeline and geographic constraints limit shipments to the East Coast, ultimately hurting consumers.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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