Trump administration preparing plan for 90-day diesel exports ban: Report

The Trump administration is preparing to impose a 90-day ban on diesel exports in a bid to bring down soaring energy prices, the Politico news outlet reported Wednesday.

Sources familiar with the plan told Politico that the White House is attempting to reduce high fuel prices that are weighing on Republicans leading into the Nov. 3 midterm elections

US fuel producers are opposed to the ban and have warned federal officials that "any short-term benefit would be outweighed by higher fuel prices in the future."

If the ban is enacted, it would be the first restriction on US energy exports since the Obama administration lifted a decades-old ban on oil exports in 2015, according to the report.
Diesel prices are currently at record highs around $6.52 per gallon compared with $2.83 per gallon last year, according to the American Automobile Association (AAA).

The report said the steep increase is due to the Trump administration's war against Iran in addition to Ukraine's attacks against Russian refineries.

But heading into the midterms, in which Republicans are trying to maintain majority control in both the US House and Senate, high energy prices are hampering Republican candidates trying to seek reelection, which is why sources told Politico that President Donald Trump is trying to implement the ban.

An industry executive told Politico that Trump is inclined to announce a ban by the end of the week and said the president considers any blowback "a December problem."

“What has overpowered cooler heads (in the White House) is the absolutely, sky-is-falling, we-have-to-do-something concern about prices at the pump” faction, said the oil executive. "That camp has been swept aside by the political camp, which says, 'dammit, something has to happen,'" they added.

The White House and the Department of Energy did not acknowledge the report.

"This is another fake news story from Politico," said a White House official.

Industry experts said a diesel ban would have a domino effect on the rest of the world, noting that "countries around the world have grown more dependent on US diesel."

"A ban on diesel exports by the US would exacerbate the existing severe strains in the global diesel market and drive prices outside of the US even higher in the short term," said David Oxley, chief climate and commodities economist at Capital Economics, in a statement to Politico.

“Nonetheless, given that a surplus of diesel in the US could paradoxically force American refiners to cut supplies of oil products – potentially within a few weeks – a ban would ultimately be self-defeating,” added Oxley.