- US Energy Secretary Chris Wright opposes a proposed diesel export ban by President Trump
- Wright warns export bans could overload storage and raise gasoline and jet fuel prices
- Diesel prices hit record $6.52 per gallon amid US-Iran and Russia-Ukraine conflicts
US Energy Secretary Chris Wright said a proposed ban on diesel exports would not meet its objectives, putting him at odds with President Donald Trump.
Wright cautioned that stopping exports would overload domestic storage and unintentionally push up prices for other refined products such as gasoline and jet fuel.
Diesel prices have reached record levels because of the US-Israeli war with Iran and the Russia-Ukraine war, sparking frustration among farmers and other fuel consumers as the midterm elections approach in November, Reuters reported.
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"The blunt tool of banning diesel exports definitely doesn't work," Wright said at an event in New York.
On Wednesday, the average price for diesel in the U.S. was $6.52 per gallon, a 76% increase from the same time last year, according to AAA, a motorists' advocacy group.
"If you can't export the diesel that comes out of our refineries, you run out of places to store it, and you have to reduce US refining, which would put upward pressure on gasoline prices and jet fuel prices," he added.
Wright's remarks are notable, as public dissent from a cabinet member toward Trump is rare in an administration where top officials have typically closely supported the president's stances.
High fuel prices pose a risk for Trump as his fellow Republicans aim to retain their slim majority in both chambers of Congress in the November 3 elections. With global diesel supplies constrained and limited immediate options to lower prices, the administration is under pressure from Republicans in competitive races to act, making fuel costs a central issue in a wider political challenge for the party.
Although US Agriculture Secretary Brooke Rollins has also brought up the issue of high diesel prices with the president, other top US officials have resisted implementing an export ban. US Interior Secretary Doug Burgum warned that such a ban might provoke retaliatory measures from nations that supply fuel to the US, potentially harming states like California.
Many energy analysts agree that a ban could lead to higher fuel prices, since the resulting surplus at home would compel refineries to slow down.
"The loss of export abilities would force many plants to cut run rates, and reduce their output of gasoline (and numerous other products) as well, which becomes counterproductive," analysts for TACenergy wrote in a note on Wednesday.
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A White House official said Trump "wants to see gas prices at the pump fall and is evaluating all the options on the table."
Wright commended Trump's Venezuela policy, which calls on US companies to increase production and resume operations in the country following January's operation by US special forces that captured Nicolás Maduro, the South American nation's leader, and placed his deputy, Delcy Rodríguez, in charge.
"Some companies have already gone into Venezuela, but a larger U.S. presence in a country for sure is a little bit of increased security," Wright said.
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