US energy secretary says diesel export ban won’t work after Trump backs idea

ADMINISTRATION EXPLORING “ALL AVAILABLE OPTIONS”

Wright said on Wednesday that the Trump administration is open to any ideas on lowering fuel prices and will make policy announcements in the coming days.

The administration was working with the refining industry to increase the supply of US diesel in a “simpler, voluntary, cooperative fashion, without using blunt instruments that would reduce refining throughput”, he said, but did not detail that plan and said no decisions have been made.

“The Secretary remains fully aligned with the President in exploring all available options to lower energy prices,” the Department of Energy said in a statement.

Record fuel prices are a risk for Trump as his fellow Republicans seek to maintain narrow control of both chambers of Congress in the Nov 3 elections.

With global diesel supplies tight and few obvious ways to quickly bring prices down, the administration is facing calls from Republicans in competitive races for action, putting fuel costs at the centre of a broader political challenge for the party.

The US oil and refining industry on Wednesday urged Trump to reject calls for a diesel export ban, saying restrictions would reduce refinery output and raise prices for gasoline and jet fuel.

A letter signed by 36 industry and business groups, including the American Petroleum Institute, American Fuel & Petrochemical Manufacturers, Business Roundtable and US Chamber of Commerce, said US refiners are running at full capacity and producing more diesel than the country consumes.

“Export bans would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers,” the letter states.