Trump Reverses Diesel Export Ban and Explores Alternatives to Lower Fuel Prices

U.S. President Donald Trump reversed course on plans to impose a ban on American diesel exports, after officials in his administration warned that restricting exports could lead to higher gasoline and other oil product prices. Trump said that warnings from the Secretaries of Energy and the Interior about the unintended consequences of the ban prompted him to reconsider the idea, noting that oil prices could trend downward. The administration is exploring other options to reduce fuel costs, including encouraging some European countries that rely on U.S. diesel to draw from part of their own stockpiles, as well as examining potential measures related to taxes on diesel. These moves come as diesel prices have reached record levels, with the U.S. retail average hitting $6.41 per gallon, nearing the highest level recorded last week. The U.S. government said on Tuesday that it intends to lend energy companies up to 40 million barrels of oil from the Strategic Petroleum Reserve, marking the latest tranche from Washington under a global agreement to draw down stockpiles following the war with Iran. In March, the United States agreed to lend 172 million barrels from the Strategic Petroleum Reserve as part of a broader agreement with about 30 member countries of the International Energy Agency to withdraw 400 million barrels.