Trump diesel export plan raises global fuel supply concerns

**WASHINGTON-(MaraviPost)-**The Trump administration is facing growing pressure over a possible 90-day suspension of US diesel exports as record fuel prices intensify concerns about supplies in the United States and international markets.

The Telegraph reported on Wednesday that European diesel prices rose sharply after reports emerged that Washington was considering stopping diesel exports for 90 days, although the White House later dismissed the report as “fake news.”

Reuters subsequently reported that the administration was indeed discussing a 90-day export ban, citing five people familiar with the discussions, but said it could not independently verify the report.

The uncertainty has already affected energy markets, with Reuters reporting that European diesel refining margins reached a record level after President Donald Trump said he supported restricting exports to reduce domestic fuel prices.

Trump said on Tuesday that the United States should consider keeping more diesel at home, arguing that the country produces large quantities of the fuel.

US Energy Secretary Chris Wright, however, has publicly opposed an outright export ban, saying on Wednesday that such a measure would not work and could increase the cost of gasoline and jet fuel.

Wright said restricting exports could leave US refineries with limited storage capacity, forcing them to reduce production and potentially placing upward pressure on other fuels.

The disagreement highlights a division within the administration over how to respond to soaring diesel prices, which have become a political concern ahead of the November midterm elections.

US diesel prices have climbed to record levels, with Reuters reporting an average of about $6.52 per gallon on Wednesday, up roughly 76 percent from a year earlier.

The potential export restrictions have also raised concerns in Europe because the United States is an important supplier of diesel to the region.

Britain could be particularly exposed because a significant share of its diesel imports comes from the United States, meaning a prolonged disruption could tighten supplies and increase prices.

Energy analysts have warned that an export ban could also affect transport, agriculture, construction and food distribution because diesel is heavily used by trucks and agricultural machinery.

The American Petroleum Institute has separately warned that removing US diesel from international markets could affect global supply chains, agriculture, shipping and manufacturing.

The White House has not announced a final diesel-export ban, leaving the immediate policy direction uncertain.

The latest developments instead point to an administration weighing possible restrictions while senior officials, including Wright, argue that increasing domestic diesel production and managing supplies would be more effective than imposing a blanket export ban.

The issue has gained urgency amid the wider disruption to global energy markets caused by the conflicts involving Iran and Ukraine, which have reduced supplies from several major oil-producing regions.

The post Trump diesel export plan raises global fuel supply concerns appeared first on The Maravi Post.