President Trump has ruled out a ban on diesel exports, a move he floated to reduce domestic prices but which faced doubts about its effectiveness and fears it would backfire.
“We’re not going to be doing the export ban,” Mr. Trump told reporters at the White House on Friday.
Mr. Trump said a ban would not happen hours after the Group of Seven nations agreed to release 100 million barrels of diesel reserves to address shortages caused by the wars in Iran and Ukraine.
People were interested in these podcasts
Mr. Trump, speaking in September at the U.N., said he was considering an export ban — something supported by key Republican allies in Congress.
On Friday, Mr. Trump said Europe would be releasing large stocks of diesel, making an export ban unnecessary.
“It was never really on the table,” he said. “What Europe did was a great thing.”
Some U.S. officials were leery of an export ban because they were not sure it would have an immediate effect on prices.
The move could backfire if other countries retaliated and higher global prices boomeranged back on U.S. consumers. Plus, it may be difficult to send domestic supply to every corner of the U.S.
Resolving the Iran and Ukraine wars would likely be the quickest way to resolve the diesel issue.
The Ukraine war started in February 2022, when Russian President Vladimir Putin launched an unprovoked invasion. Ukrainian forces struck Russian refineries in recent weeks, resulting in a diesel shock.
The conflict in the Middle East is causing shortages, too. Mr. Trump launched strikes in Iran on Feb. 28 to prevent Tehran from getting a nuclear weapon.
Iran retaliated by shutting down oil traffic in the Strait of Hormuz and striking energy facilities in the Gulf region.
Diesel prices average $6.37 per gallon in the U.S., according to the AAA motor club. That’s much higher than $3.70 per gallon at this time last year, but down from a late September record high of $6.53.
The U.S. has seen progress in moving oil out of the Middle East and tapping into oil reserves in Venezuela, easing fuel prices after refineries get the product.
“We’re going to have a lot of oil,” Mr. Trump said Friday.
Contact the author
Please read our comment policy before commenting.