WASHINGTON — President Donald Trump said Sunday that his administration is still considering a ban on U.S. diesel exports as record-high fuel prices put pressure on consumers and farmers ahead of the November midterm elections.
“We’re thinking about it very seriously,” Trump told a Fox News reporter while attending the Presidents Cup golf tournament in Illinois. He said an export restriction could also affect gasoline prices and that his administration could still impose one.
Trump previously said he expected to decide quickly whether to restrict diesel exports as U.S. retail diesel prices reached record levels.
Energy Secretary Chris Wright has said the administration is considering restrictions short of an outright ban. Politico reported last week that the White House was preparing a plan for a 90-day diesel export ban.
The prospect of restrictions has drawn opposition from the U.S. energy industry, while analysts have warned that limiting exports could affect global fuel supplies and potentially raise prices in other markets.
U.S. diesel prices have risen amid disruptions linked to the conflicts involving the United States and Iran and Russia and Ukraine. AAA reported an average U.S. diesel price of about $6.50 per gallon Friday, just below the record $6.53 reached Sept. 22.
Morgan Stanley strategists said a U.S. export restriction could initially lower domestic diesel prices but could also trigger higher global prices and affect U.S. gasoline prices as refineries adjust their operations.
Benedict George, head of European product pricing at Argus Media, said restrictions could push European diesel prices to unprecedented levels. He said the United States supplied about half of Europe’s diesel imports over the previous two months.
George also stressed that the administration had not announced a restriction and that its scope remained uncertain.
The American Petroleum Institute has opposed an export ban. API CEO Mike Sommers said restricting U.S. energy exports could worsen refining challenges and increase costs for consumers.
The global diesel supply crunch has also intensified as Ukrainian attacks disrupt Russian refinery operations and disruptions continue along major oil and fuel trade routes.
George said uncertainty over U.S. policy, the Russia-Ukraine war and disruptions around the Strait of Hormuz have made it difficult to predict how long the diesel supply crunch will continue. He said any U.S. export restriction discussed so far appears likely to remain a short-term measure.