Trump Keeps Diesel Export Ban on Table, Warns of Gasoline Impact
The president said restricting diesel exports could lower diesel prices while pushing gasoline prices higher. The proposal remains under discussion.
President Donald Trump said Wednesday that he remains open to banning U.S. diesel exports, while warning that the move could push gasoline prices higher and disrupt fuel markets.
Trump said his administration discusses the idea daily. He said a restriction might bring diesel prices down "a little bit," but gasoline prices could rise by a similar amount.
The proposal comes as diesel prices have reached record levels amid disruptions to global energy flows tied to the conflicts in Iran and Ukraine. Energy Secretary Chris Wright said diesel supplies remain tight because of lost exports connected to conflicts in Russia and the Middle East, as well as reduced shipments from China.
Wright said U.S. refiners are operating at record levels and that additional diesel supplies from Europe are expected to reach the market. He also said diesel prices had declined during the previous week.
Trump said oil prices could begin falling and pointed to the recent recovery of crude shipments through the Strait of Hormuz, a major route for global oil trade. Ship traffic through the strait returned to prewar levels this week after being sharply reduced following U.S. and Israeli attacks on Iran in late February.
Trump has not announced a diesel export ban, and the administration continues to weigh its potential effects on fuel prices.
