Energy Secretary Says Diesel Export Ban Would Raise Fuel Prices

U.S. Energy Secretary Chris Wright told an audience in New York that prohibiting diesel exports would be ineffective and could increase gasoline and jet fuel prices. He said the measure would force refineries to store excess diesel, potentially reducing refining throughput and pushing up other fuel costs. Wright added that the administration is working with the refining sector on a voluntary, cooperative approach to boost diesel supply, though no specific plan has been announced.

Diesel prices have risen sharply, with the American Automobile Association reporting an average of $6.52 per gallon, a 76% increase from a year earlier. The surge has drawn criticism from farmers and other diesel-dependent groups ahead of the November midterm elections.

President Donald Trump has expressed support for an export ban, while other officials, including Interior Secretary Doug Burgum, have warned it could provoke retaliation from foreign fuel exporters. Energy analysts note that limiting exports would likely force plants to cut run rates, reducing output of gasoline and other products.

The Department of Energy said the secretary remains aligned with the president in exploring all options to lower energy prices. A White House official indicated that the president wants to see gasoline prices fall and is reviewing all proposals.

Wright also highlighted ongoing U.S. policy toward Venezuela, noting that companies are considering investments to revive the country’s oil sector after recent political changes.