Trump administration weighs 90-day diesel export ban
The Trump administration is preparing a plan to impose a 90-day ban on US diesel exports in an effort to bring down sharply higher fuel prices, Politico reported Wednesday, citing people familiar with the discussions.
The proposed restriction comes as diesel prices in the United States have climbed to record levels, putting pressure on consumers and adding to political concerns for Republicans ahead of the Nov. 3 midterm elections.
Diesel prices have risen to about $6.52 a gallon, compared with $2.83 a year ago, according to the American Automobile Association.
White House faces industry opposition
US fuel producers have opposed the potential ban, warning federal officials that any short-term relief could be outweighed by higher prices later.
An industry executive told Politico that President Donald Trump could announce the measure by the end of the week. The White House and Department of Energy have not confirmed the report.
A White House official dismissed the report as “another fake news story from Politico.”
If implemented, the measure would mark the first US restriction on energy exports since the Obama administration lifted a decades-old ban on crude oil exports in 2015, according to Politico.
Experts warn of global market impact
Industry analysts have warned that restricting US diesel exports could tighten supplies in international markets, where dependence on American diesel has increased.
David Oxley, chief climate and commodities economist at Capital Economics, said an export ban could intensify existing strains in the global diesel market and push prices higher outside the United States in the short term.
Oxley also warned that the policy could ultimately prove counterproductive if excess diesel supplies forced US refiners to reduce production of other petroleum products.
The reported plan comes as the administration faces pressure over elevated energy costs, with the conflict involving Iran and attacks on Russian refineries cited as factors contributing to disruptions in global fuel markets.
Source:AA
