Energy Secretary Chris Wright Urges Oil Industry To Voluntarily Cut Diesel Exports As Prices Stay Near Record High: ‘You Gotta Put Americans First’
Energy Secretary Chris Wright is asking U.S. refiners to voluntarily trim diesel exports and keep more fuel at home as prices remain near record highs, saying companies should prioritize domestic consumers while the Trump administration searches for ways to ease tight supplies.
Wright Pushes Refiners To Keep Diesel Home
"You gotta put Americans first. Reduce a little bit your exports overseas, put some more diesel into the United States. Let’s grow our diesel inventories, let’s push prices down," Wright told reporters after an event in Allentown, Pennsylvania, according to an AP report.
He added, "We need to see more of that diesel staying here to bring immediate relief to American buyers of diesel." The Associated Press reported that Wright also said officials are considering other measures but are not ready to discuss them.
Reuters reported Thursday that Wright contacted executives at several major refiners to gauge support for voluntary restrictions. The effort marks an alternative to an outright export ban, which Wright has warned could backfire.
"The blunt tool of banning diesel exports definitely doesn’t work," Wright said Wednesday. "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."
The White House separately denied preparing a flat 90-day export ban.
Tight Inventories Keep Diesel Prices Elevated
The supply squeeze remains severe. Energy Information Administration data put U.S. on-highway diesel at $6.529 per gallon on Sept. 21, a record high. U.S. distillate net exports have remained near or above their previous five-year high since February, while inventories were 13% below their five-year seasonal average as of Sept. 11. EIA expects inventories to remain low through much of 2027 as global diesel supplies remain constrained.
The agency expects low inventories and elevated prices to persist as global diesel production remains constrained. Reuters reported that conflicts involving Iran and Ukraine have sharply reduced exports from major suppliers, while the U.S. remains the world’s largest diesel exporter.
Industry And Lawmakers Split Over Restrictions
Industry groups this week have pushed back against formal restrictions, warning they could force Gulf Coast refiners to cut output and ultimately raise gasoline and jet-fuel prices.
Meanwhile, lawmakers including John Thune (R-S.D.) and Chuck Grassley (R-Iowa) have pressed for restrictions as farmers and truckers absorb higher fuel costs. Thune said the U.S. could explore an export ban, while Grassley believes high diesel prices are hurting farm income.
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