ALBAWABA - In an effort to control diesel fuel prices, which are at an all-time high in the U.S., the Trump administration is preparing for a 90-day diesel fuel export ban, according to a report by Politico.
Diesel fuel in the U.S. hit $6.52 per gallon, up from $2.83 per gallon last year, according to the American Automobile Association (AAA), leaving the Trump administration to scramble to deal with growing discontentment of the American public ahead of the pivotal midterm elections.
U.S. fuel producers have warned against the ban, saying: "any short-term benefit would be outweighed by higher fuel prices in the future."
If it goes ahead, the diesel export ban would be the first of its kind since 2015 when the Obama administration lifted a decades-old ban on oil exports.
The report further states that the two main contributing factors to the diesel price hike – and subsequent export ban – are the Iran war and Ukraine's targeting of Russia’s fuel infrastructure.
TRUMP CONSIDERS DIESEL EXPORT BAN AS US PRICES HIT RECORD $6.53 A GALLON — WSJA ban could force US refineries to cut production by nearly 2 million barrels a day and reduce gasoline output by up to 750,000 barrels a day, potentially adding 25 cents per gallon to gasoline prices pic.twitter.com/YoEq8TkWEc
According to an industry executive, President Trump is inclined to announce a ban by the end of the week and that 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,
“That camp has been swept aside by the political camp, which says, 'dammit, something has to happen,'" the industry executive said to Politico.
The White House, along with the Department of Energy, vehemently denied any claims of a diesel export with a White House official saying: "This is another fake news story from Politico,"
Oil and gas industry experts said that the ban would have a domino effect on the rest of the world, with David Oxley, chief climate and commodities economist at Capital Economics saying:
"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," Oxley said 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,”
Pshemaf Choiaqo is a digital marketer with a passion for media, style, and presentation.
He enjoys researching unorthodox and nonconventional subjects almost as much as he enjoys writing about them.
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