Updated
Updated · POLITICO · Sep 21
Oil Industry Warns Trump Against Diesel Export Ban as $6.45 Prices Stoke Farm Pressure
Updated
Updated · POLITICO · Sep 21

Oil Industry Warns Trump Against Diesel Export Ban as $6.45 Prices Stoke Farm Pressure

3 articles · Updated · POLITICO · Sep 21

Summary

  • Oil executives say the White House is seriously weighing a diesel export ban, a sign the administration may bend to farm-lobby demands and Republican election-year pressure over pump prices.
  • Mike Sommers of the American Petroleum Institute and Energy Secretary Chris Wright warned a ban could quickly fill Gulf Coast storage, force refineries to cut runs and reduce supplies of gasoline and jet fuel as well as diesel.
  • Industry officials said they still expect the administration to reject the idea, but one executive described confidence as shakier than weeks ago because of a "panic" to address fuel costs.
  • The pressure has intensified as diesel prices hover near a record $6.45 a gallon, with lawmakers including Chuck Grassley, John Thune and Tim Burchett pushing export curbs to ease pain for farmers.

Insights

Could a proposed U.S. diesel export ban actually trigger a worse domestic fuel shortage by forcing refineries to slash overall production?
With diesel prices squeezing the supply chain, how might cutting off fuel to major trading partners backfire on everyday American consumers?