US President Donald Trump has announced that he is considering a ban on diesel exports in an effort to ease prices in the US ahead of the November midterm elections. The move comes amid a global shortage of diesel fuel, which has been exacerbated by the war in Iran. Trump has also urged European countries to release some of their diesel reserves to help alleviate the pressure on prices.
The US is a significant supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day. Experts have warned that a ban on shipments abroad could put further pressure on prices in other countries. Trump's Treasury Secretary, Scott Bessent, has urged Europe to immediately ready and release diesel supplies, arguing that US farmers, truckers, and businesses should not be left carrying the burden of high prices.
The issue is a top priority for US voters ahead of the midterm elections, with control of Congress up for grabs. Trump is set to travel across the US, campaigning for Republicans in hopes of keeping control of the House and Senate. Diesel prices in the UK have hit record highs, hovering just under 200p per liter, according to motoring organization the RAC.
The UK held talks with European partners about the potential release of diesel reserves in response to any ban. UK Energy Minister Martin McCluskey was on a call with European counterparts to discuss the potential ban. A source familiar with the discussions said it was prudent to prepare a coordinated response with other countries, including those across the EU.
The UK government has stressed that there is no cause for concern about potential diesel shortages, although prices are expected to rise further. A European Commission spokesperson said there were "lots of calls, lots of meetings" taking place on the diesel situation, including with "high-level contacts" in the US administration.
Chinese refiners have reportedly halted October exports of some fuel products as Beijing prioritizes domestic supplies, potentially adding to the pressure on the global diesel market. The closure of the Strait of Hormuz, which typically transports around a fifth of the world's oil and gas, has pushed up the price of products made from oil.
An export ban from Russia, also a major supplier of diesel, has added to the pressure on prices. Trump has argued that keeping any surplus barrels of diesel in the US would lower pump prices domestically, offering immediate relief to drivers, truckers, and businesses ahead of the midterm elections. However, David Fyfe, chief economist at Argus Media, said cutting off American supply would likely cause international prices to skyrocket.
Key points
- US President Donald Trump threatens to ban diesel exports to ease prices ahead of midterm elections
- The US is a significant supplier of diesel to the world, exporting between 1.2 and 1.5 million barrels per day
- Diesel prices in the UK have hit record highs, hovering just under 200p per liter
