Trump Administration Weighs US Diesel Export Ban Amid Price Surge, FT Reports

The Trump administration is evaluating a range of measures, including a potential ban on diesel fuel exports, in an effort to contain soaring domestic prices, the Financial Times reported on Wednesday. The discussions come as the administration faces mounting political pressure over a worsening energy crisis.

Potential Ban Under Review

Citing people familiar with the matter, the FT reported that administration officials have discussed restricting international sales of diesel. U.S. allies, including Britain, have reportedly been briefed about the possibility of supply disruptions stemming from such a policy.

A White House official acknowledged that President Trump is evaluating options to lower fuel costs but stated that no final decision on exports has been made, according to the report. The internal debate highlights a growing tension between oil companies and Republican lawmakers from agricultural states concerned about the impact on farmers and industry ahead of midterm elections.

Market Context

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The consideration of such a drastic measure follows a sharp rise in fuel costs. According to the FT, U.S. diesel prices reached $6.53 a gallon last week, a figure more than 70% above prewar levels.

In addition to a potential export ban, the administration is reportedly weighing other policy actions to provide relief to consumers and key industries. These options are said to include:

• Further waivers of the Jones Act, which governs maritime shipping between U.S. ports.
• Various forms of tax relief.
• Easing regulations on the use of lower-cost dyed diesel.