Trump says a diesel export ban remains an option as his administration weighs voluntary fuel-company export limits, tax and regulatory relief, and state tax cuts. Ben Werschkul of Yahoo Finance says the alternatives would have only a limited effect on diesel prices.
The form of any voluntary export limits is unresolved, and Werschkul said it is unclear whether refiners would agree. Oil and gas companies are pushing for tax and regulatory relief: lowering the federal diesel excise tax would probably require Congress, while the White House is discussing regulatory changes to give companies more flexibility. Nebraska, Alabama and Texas have also discussed lowering state diesel taxes.
Werschkul said a White House official described a diesel export ban as potentially having dramatic price effects in some U.S. regions and possibly backfiring over the longer term. He reported diesel prices had been at record levels throughout the month. Asked whether drivers would see higher gas prices before the midterm elections, Trump did not answer directly and said gas prices would fall sharply after the Iran war ends.
