US energy secretary seeks refiners' help to curb diesel prices
USO•Energy Secretary Chris Wright has contacted major US refiners to gauge support for voluntary diesel export limits as the administration seeks alternatives to a short-term ban. Diesel prices have climbed to about $6.52 a gallon, and US inventories were about 13% below the five-year seasonal average.
1. Voluntary limits considered
Wright contacted executives at several major US refiners in recent days to ask about voluntary restrictions on diesel exports, three people familiar with the discussions said. The companies contacted, the scale of any reductions and how a voluntary arrangement would be monitored or enforced were unclear.
2. Industry warns of effects
The American Petroleum Institute and more than 30 business, energy and manufacturing groups urged President Donald Trump to reject calls to limit fuel exports. Industry representatives say restrictions could fill storage tanks and lead refiners to process less crude, reducing production of diesel, gasoline and jet fuel.
3. Prices and political pressure
US diesel prices have climbed to about $6.52 a gallon, while inventories were below 97 million barrels last week, about 13% below the five-year seasonal average. Trump said he supported restricting exports, while Wright said he opposed a ban and preferred a voluntary effort. Republican lawmakers have called for export restrictions as fuel costs rise ahead of November midterm elections.
