Trump eyes 90-day diesel export ban ahead of midterms

The Trump administration is preparing to impose a 90-day ban on diesel exports in an effort to reduce soaring energy prices ahead of the Nov. 3 midterm elections, sources familiar with the plan told Politico on Wednesday. The proposed restriction would mark the first limitation on US energy exports since the Obama administration lifted a decades-old oil export ban in 2015, and comes as diesel prices have hit record highs of $6.52 per gallon compared with $2.83 last year, according to the American Automobile Association.

Political pressure mounts

Republican candidates seeking to maintain majority control in both the US House and Senate are facing voter anger over the steep price increases, which the report attributed to the Trump administration's war against Iran combined with Ukrainian attacks on Russian refineries. President Donald Trump is inclined to announce the export ban by the end of the week and considers any political blowback "a December problem," an industry executive told Politico.

An oil executive said the administration's political operatives have overridden policy experts, stating: "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. That camp has been swept aside by the political camp, which says, 'dammit, something has to happen.'" The White House and the Department of Energy did not acknowledge the report when contacted by the news outlet.

Industry warns of global fallout

US fuel producers have warned federal officials that "any short-term benefit would be outweighed by higher fuel prices in the future," while industry experts noted that countries worldwide have grown dependent on American diesel. David Oxley, chief climate and commodities economist at Capital Economics, stated that "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," adding that a domestic surplus could paradoxically force refiners to cut supplies within weeks.

The White House dismissed the report as "another fake news story from Politico," according to a White House official. Diesel prices have more than doubled since last year, according to AAA data.