President Donald Trump is considering restricting U.S. diesel exports as prices surge ahead of the midterm elections, with the national average reaching $6.51 per gallon, up from $3.69 a year ago, The New York Times reports.
Supporters argue that limiting exports could keep more fuel in the U.S. and reduce costs for farmers, truckers and other businesses, but energy experts warn the move could ultimately backfire by causing refineries to cut production, potentially pushing up prices for diesel, gasoline, jet fuel and other petroleum products.
The administration has broad emergency powers that could potentially be used to restrict exports, though it remains unclear whether existing law allows the president to impose a complete ban on refined fuels such as diesel. Energy Secretary Chris Wright says the administration is not considering a full blanket ban or zero exports.
The U.S. produces about 5.3 million barrels of distillate fuels daily, with domestic consumption typically accounting for about 70% of production and the remainder exported, making the country a major supplier to global markets. Restricting exports could temporarily lower prices in some U.S. regions by increasing domestic supplies, but analysts say inventories would eventually fill, prompting refiners to reduce production and potentially pushing prices higher.
The proposal is also raising concerns among U.S. trading partners, particularly Europe and Brazil, which have become more reliant on American diesel as supplies from Russia and the Middle East have declined. European officials warn restrictions could disrupt markets and add to inflationary pressures, while economists say the war in Iran and resulting disruptions to the global energy system are major drivers of elevated fuel prices.
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