US President Donald Trump said Wednesday he is considering a ban on diesel exports but warned that the measure could push up gasoline prices.
Speaking to reporters at the White House after an announcement on South Korean investments in US energy projects, Trump said he regularly discusses the option with Energy Secretary Chris Wright and Interior Secretary Doug Burgum.
"I'm thinking about it," Trump said when asked whether he had decided to ban diesel exports.
He said Wright and Burgum believe a ban could help lower diesel prices but might increase prices for other products, including gasoline.
Trump said he expects oil prices to begin falling, citing what he described as large volumes of oil passing through the Strait of Hormuz.
He attributed diesel supply problems primarily to disruptions at diesel refineries in Russia amid the Russia-Ukraine war, rather than developments in the Middle East.
Russian diesel refineries are being taken offline at an alarming pace, Trump said, arguing that the disruption has been the biggest factor behind the diesel shortage.
Wright said the administration has been working daily for weeks and months to address the issue.
He noted that diesel prices declined last week and said he expects further substantial reductions in the coming days and weeks, with announcements on measures to ease supply pressures expected soon.
Wright said the loss of Russian diesel supplies had tightened the market, while disruptions to exports from the Middle East and China had added to the pressure.
US refineries are producing at record levels, he said, adding that forthcoming announcements on additional diesel supplies from Europe would help bring prices down significantly.
According to the American Automobile Association, the average US diesel price reached a record $6.53 per gallon on Sept. 22 before easing to $6.41 on Sept. 30.
