US Energy Secretary Chris Wright has sounded out major refiners on voluntary diesel-export limits as the Trump administration seeks an alternative to a short-term ban. The terms and industry response are unclear; AAA says US diesel is about $6.52 a gallon.
Trump said Tuesday that he supported export restrictions, while Wright said a ban was a bad idea and that he preferred a voluntary approach. Republican lawmakers from states reliant on farming and other diesel-intensive industries have pressed for restrictions; the American Petroleum Institute and more than 30 business, energy and manufacturing groups urged Trump on Wednesday to reject limits on diesel and other fuel exports.
Refiners say Gulf Coast plants produce more diesel than the region uses and rely on exports to sell the surplus. They warn limits could fill storage and force lower crude processing, reducing diesel, gasoline and jet-fuel output; consultant Alan Gelder said this could increase gasoline imports, potentially at higher prices. US diesel inventories were below 97 million barrels last week, about 13% below the five-year seasonal average, according to the EIA.
