President Donald Trump declared Friday that the United States will not implement a ban on diesel exports, following an agreement by Group of Seven nations to release emergency fuel stockpiles.
Trump made the announcement Oct. 2 at the White House, saying, "Europe has a lot of diesel and they're going to be making a major world contribution and so are we, and we're not going to be doing the export ban." The G7, which includes major economies across Europe, North America and Asia, committed to releasing as much as 100 million barrels of emergency oil and diesel stocks.
The G7's move came after an intense pressure campaign from the Trump administration. Trump acknowledged his role, adding, "I did ask them, and we're going to have a lot of oil. They did a great job."
Trump's declaration represents a shift from earlier considerations of possible diesel export curbs. Last month, Trump had encouraged his advisers to support such a ban. On Friday, he maintained that the export ban was never a serious option, telling reporters, "We were never going to do it. I don't think we were."
The decision comes during a record surge in diesel prices, which power farm equipment, U.S. shipping and supply heat and power to rural communities. The rising cost of diesel has contributed to higher consumer goods prices ahead of the November midterm elections.
Trump's approach balances competing interests: agricultural communities in the heartland, where several Republican incumbents face tough re-election races, and oil interests. Farmers in heartland states have been heavily affected by high fuel costs.
Some prominent Republicans, including Senator Chuck Grassley of Iowa and Senator Dan Sullivan of Alaska, had encouraged export curbs to alleviate voter concerns over fuel prices. Sullivan faces a tight re-election contest.
Oil industry leaders and energy experts warned that limiting foreign diesel sales would offer only short-term price relief. They argued that such a ban would lead to rapid cost increases, as swelling domestic inventories would prompt U.S. oil producers and refiners to cut production.
Energy Secretary Chris Wright also weighed in on the matter. The decision to forgo an export ban reflects a preference for international cooperation and strategic reserve releases over domestic market intervention to address fuel costs.
