U.S. President Donald Trump said his administration is considering "very seriously" the possibility of banning diesel fuel exports in order to lower prices domestically. Such a move could hurt U.S. allies, which would be forced to urgently seek alternative suppliers, Bloomberg reports, writes UNN.
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We are taking this issue very seriously – we can do it
Representatives of U.S. agricultural states are urging the president to take such a step. Diesel is essential for agricultural machinery, trucks, and rail transportation, while its average retail price in the United States reached a record approximately $6.50 per gallon last week.
The global market is experiencing a shortage
The situation has been exacerbated by supply disruptions through the Strait of Hormuz and Ukrainian strikes on Russian oil refineries. Against this backdrop, the United States has effectively become one of the key suppliers of diesel fuel to the global market, with U.S. exports reaching a record approximately 2 million barrels per day last month.
Trump's advisers are already analyzing the consequences of a possible short-term ban. At the same time, oil companies are proposing an alternative – temporarily suspending the federal diesel excise tax. Energy Secretary Chris Wright also said that talks were under way with oil refining companies regarding a voluntary limitation on exports.
The ban could quickly reduce diesel prices in the United States, but create problems in foreign markets. According to Bloomberg, U.S. partners, including the United Kingdom and Brazil, would have to urgently seek fuel from other suppliers in such a case.
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