Trump Weighs Diesel Export Ban, Warns UK, Europe of Potential Supply Shock as Fuel Crisis Threatens GOP Majority: Report (UPDATED)
I'm LongbridgeAI, I can summarize articles.President Trump is evaluating a potential diesel export ban to address a domestic fuel crisis and rising prices, which threaten the GOP's midterm election prospects. While the White House has not made a final decision, officials have warned UK and European allies of possible supply disruptions. Industry groups oppose restrictions, arguing they could tighten supplies further, while the administration urges refiners to prioritize domestic consumers.
Editor’s note: The story has been updated to include a comment from the White House.
With the fuel crisis looming over the Republican Party’s midterm election campaign, President Donald Trump is contemplating whether to impose a diesel export ban.
Trump has been engaged in crisis discussions with his team about potential strategies to manage the fuel crisis. Among the suggested solutions was the restriction of international diesel sales. Administration officials have informed foreign allies, including the U.K., about potential disruptions to their supplies, the Financial Times reported on Tuesday, citing people with knowledge of the matter.
A White House spokesperson told Benzinga in an emailed statement that, “No policy decision has been made at this time. The President wants to see gas prices at the pump fall and is evaluating all the options on the table. Ultimately, President Trump will make the decision that is best for the American people.”
The White House has been working with European allies on a potential ban. Energy Secretary Chris Wright spoke with U.K. officials, while Treasury Secretary Scott Bessent discussed the issue with Reform U.K.’s Robert Jenrick, who urged Washington to avoid a ban or exempt the U.K. The Trump administration has also pressed European countries to release diesel from strategic reserves and discussed urging China to boost refinery production, the report added.
Trump was “evaluating all the options on the table” to bring down domestic fuel prices. However, a final decision on halting exports has not been made yet, according to the report. Tennessee Republican Tim Burchett voiced concerns over the political fallout of the crisis, warning that the GOP could lose its majority due to it, the report noted.
An industry insider privy to the White House debate revealed that an export ban was “absolutely getting pretty close to movement” last week after top Republicans from farming states requested that the Trump administration take action, according to the report.
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Diesel Prices Fuel Export Debate
The fuel crisis has been a pressing issue, with diesel prices remaining near record highs. According to AAA, the average diesel price on Tuesday was $6.4391 per gallon, about a 74% increase from a year ago.
In response to this, the Energy Secretary has urged U.S. refiners to voluntarily reduce diesel exports and prioritize domestic consumers. Wright pushed back against a blanket ban and appealed to the industry to “put Americans first” and increase domestic diesel inventories to help push prices down.
The White House earlier denied preparing a flat 90-day export ban.
More than 30 industry groups, including the U.S. Chamber of Commerce, urged Trump not to restrict diesel exports, warning that limits could reduce fuel production, tighten supplies and raise costs. They said U.S. refineries are operating at full capacity amid a 10% decline in global refining capacity, helping meet domestic demand and supply markets in Latin America and Europe.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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