Energy Secretary Chris Wright urged U.S. refiners to voluntarily cut diesel exports to bolsters domestic stocks and ease near-record prices ahead of the November midterms. Reports of a possible 90-day export suspension were later disputed, though President Trump expressed support for restricting exports. The EIA noted global refining slowdowns and record U.S. distillate exports have left inventories about 12% below the five-year seasonal average, and industry groups warned export limits could cause unintended supply disruptions.
Energy Secretary Urges Refiners to Curb Diesel Exports to Ease Surging Prices Ahead of Midterms
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Energy Secretary Chris Wright on Wednesday asked U.S. refiners to voluntarily reduce diesel shipments overseas to help rebuild domestic inventories and relieve record-high fuel prices ahead of the November midterm elections.
“Reduce a little bit your exports overseas,” Wright said he told refining executives. “Put some more diesel into the United States. Let's grow our diesel inventories. Let's push prices down.”
The appeal followed reports that the White House had considered a 90-day suspension of diesel exports — a step officials later said was not being formally weighed as a flat, temporary ban. President Donald Trump signaled support for restricting exports, while Wright warned that an outright ban could force refiners to cut output and inadvertently raise prices for gasoline and jet fuel.
“There's another one, too, but I can't talk about it yet. Because we're still working [on] whether we can do it or not,” Wright told reporters.
Some refining executives have expressed caution about a voluntary approach. One person involved in talks with White House officials, speaking anonymously to protect relationships, said coordinated export reductions among firms could raise federal antitrust concerns. The administration has not detailed how any voluntary program would be structured or whether it would require coordination of commercial decisions.
Diesel Prices and Supply Data
Diesel averaged $6.51 per gallon nationally on Thursday, according to AAA — down slightly from a record $6.53 set on Tuesday, but far above $3.69 a year earlier. The sharp increase has strained farmers, truckers and other businesses that depend on diesel, adding political pressure as the Nov. 3 elections approach.
The Energy Information Administration (EIA) said lower refining activity in Russia, China and the Middle East has tightened global distillate supplies, and stronger international demand has drawn diesel and related fuels from the United States even as domestic inventories remain thin. U.S. distillate exports averaged a record 1.56 million barrels per day in the second quarter — 30% above the five-year average. For the week ending Sept. 18, the EIA reported distillate inventories were 12% below the five-year seasonal average, and refineries were operating at 94% of capacity.
Industry Pushback
The American Petroleum Institute cautioned that Gulf Coast refineries produce more diesel than the region consumes and cannot easily redirect all supplies to other U.S. markets. API argued that blocking exports could fill storage tanks, force refiners to reduce runs and shrink supplies of gasoline and jet fuel as well as diesel. More than 30 business and energy groups urged President Trump this week to reject export restrictions.
“The Trump administration, including Secretary Wright, continue to work closely together as they consider a variety of options to help lower energy costs for the American people,” Energy Department spokesperson Ben Dietderich said. “Ultimately, President Trump will make the final decisions.”
This debate highlights a policy trade-off: voluntary export reductions could help lower domestic diesel prices quickly, but formal export controls or poorly designed measures risk disrupting refinery operations and tightening other fuel markets.
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