US Energy Secretary Explores Voluntary Diesel Export Curbs With Refiners

U.S. Energy Secretary Chris Wright has reached out to executives at several major American oil refiners to gauge their willingness to voluntarily restrict diesel exports, according to a Reuters report citing three people familiar with the discussions. The outreach reflects the administration's search for ways to increase domestic supply and lower fuel prices amid limited policy options.

Administration Weighs Options

The move comes as the Trump administration faces increasing political pressure over surging fuel costs ahead of the November midterm elections. According to AAA, U.S. diesel prices have climbed to approximately $6.52 a gallon, while national inventories were 13% below the five-year seasonal average last week, based on Energy Information Administration data.

President Donald Trump said Tuesday he would support restricting diesel exports, a statement that reportedly prompted officials to seek less disruptive alternatives. A Department of Energy spokesman, Ben Dietderich, told Reuters that the administration is considering a variety of options and that “President Trump will make the final decisions.”

Market Risks and Industry Opposition

An outright export ban carries significant risks that could disrupt refinery operations and potentially raise prices for other fuels. Industry groups, including the American Petroleum Institute, have urged the administration to reject an export ban, arguing it would harm the sector.

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Refiners, particularly on the U.S. Gulf Coast, produce more diesel than the region consumes and depend on exports to balance their output. Capping those exports could force them to reduce crude processing, which would in turn cut the production of gasoline and jet fuel.

Alan Gelder, a senior vice president at consultancy Wood Mackenzie, told Reuters that a diesel export ban could ironically “increase costs for American consumers” by shifting the financial burden from diesel to gasoline.

Refiners' Response

The refining industry has expressed caution about potential government intervention. In a statement to Reuters, Citgo warned that the consequences of an export ban would be “serious.” Phillips 66 declined to comment on whether it had been contacted by the Energy Department, while other major refiners including Marathon, Valero, Chevron, and ExxonMobil did not immediately respond to requests for comment.