Trump Says He’s ‘Very Seriously’ Looking at Diesel Export Ban

(Bloomberg) -- President Donald Trump said he is still looking "very seriously" at implementing a US ban on diesel exports to combat high prices, even as others in his administration continue to focus on other possible steps.

"That can oftentimes lead to a little bit of an increase on gasoline for cars, so we're looking at it very seriously — we may do it," Trump told a Fox News reporter Sunday while attending the Presidents Cup golf tournament final near Chicago.

Several farm-state lawmakers have urged Trump to limit US diesel exports during the peak of the fall harvest season, as global fuel markets reel from the disruption to flows in the critical Strait of Hormuz and Ukrainian attacks on Russian refineries. The US has emerged as the supplier of last resort to the world, with diesel exports surging to a weekly record near 2 million barrels a day last month.

National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer have been analyzing the ramifications of a potential short-term ban on US diesel exports over the last week, underscoring the seriousness of the administration's consideration of the idea.

Oil CEOs and industry groups have pushed instead for suspending the federal diesel excise tax, saying it would ease prices without the drawbacks of an export ban. But that's been met with internal debate about how to waive the tax — especially with the House of Representatives in a pre-election recess.

Diesel powers farm equipment, freight trains, trucks and delivery vans. US retail prices hit a record last week and are averaging about $6.50 a gallon, adding to voter anxiety over living costs before November's midterm elections.

Energy Secretary Chris Wright said last week that the administration is working with refiners on voluntary export curbs as an alternative to a government-imposed ban.

Some companies are already adding contractual protections in the event a pause on diesel shipments overseas prevents deliveries to foreign buyers, people with knowledge of the situation told Bloomberg News Friday.

In the event of a ban, US diesel prices would be widely expected to plummet, at least in the short run. A halt would leave America's allies, including Brazil and the UK, urgently needing to secure fuel.