White House Weighs 90-Day Diesel Export Ban as Prices Soar
Individuals with knowledge of the discussions told media that the White House views the move as a way to ease pump prices that have become a political liability for Republicans ahead of the Nov. 3 midterms.
American fuel producers have pushed back hard against the proposal, cautioning officials that "any short-term benefit would be outweighed by higher fuel prices in the future."
Should the administration move forward, it would mark the first time the US has restricted energy exports since 2015, when the Obama administration ended a decades-old prohibition on oil exports, the report noted.
The stakes are steep: diesel is currently selling at a record $6.52 per gallon, more than double the $2.83 per gallon recorded a year earlier, according to figures from the American Automobile Association (AAA).
Politico attributed the price spike to the administration's military confrontation with Iran, compounded by Ukrainian strikes on Russian refining infrastructure.
With Republicans fighting to hold onto their majorities in both chambers of Congress, elevated fuel costs have become a drag on GOP candidates' reelection prospects — a dynamic sources say is driving President Donald Trump toward the export ban.
One industry executive told Politico that Trump appears ready to announce the ban within days, viewing any political fallout as "a December problem."
“What has overpowered cooler heads (in the White House) is the absolutely, sky-is-falling, we-have-to-do-something concern about prices at the pump” faction, the executive said. "That camp has been swept aside by the political camp, which says, 'dammit, something has to happen,'" they added.
Neither the White House nor the Department of Energy responded to requests to confirm the report. A White House official dismissed the story outright: "This is another fake news story from media."
Analysts warn the ripple effects would extend well beyond US borders, pointing out that "countries around the world have grown more dependent on US diesel."
"A ban on diesel exports by the US would exacerbate the existing severe strains in the global diesel market and drive prices outside of the US even higher in the short term," said David Oxley, chief climate and commodities economist at Capital Economics, in comments provided to media.
“Nonetheless, given that a surplus of diesel in the US could paradoxically force American refiners to cut supplies of oil products – potentially within a few weeks – a ban would ultimately be self-defeating,” Oxley added.
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