Jakarta, ThedailyID — US President Donald Trump has backed a possible ban on diesel exports as fuel prices reach record levels in the United States.
The American Automobile Association (AAA) recorded the national average diesel price at US$6.51 per gallon on September 21. That equals around Rp116,000 per gallon, based on an exchange rate of Rp17,800 per US dollar.
“I’ve said, let’s not export diesel. We produce a lot of diesel. I’ve called for it, I’ve called on my people,” Trump told reporters on Tuesday, September 22.
Trump linked the proposal to attacks by Ukraine on Russian oil refineries. He said the attacks have affected Russia and contributed to pressure on diesel prices.
US Treasury Secretary Scott Bessent said the administration was studying whether to restrict diesel exports. The review includes both a full ban and a partial restriction.
Diesel prices have also risen across Europe. Supply disruptions have affected major producers, including Russia and countries in the Middle East.
The United States is also a major diesel exporter. Reuters reported that US diesel exports could face restrictions as officials seek ways to increase domestic supply.
However, the proposal has drawn warnings from officials within the Trump administration. Energy Secretary Chris Wright said an export ban could create excess diesel supplies along the Gulf Coast.
That could encourage US refiners to reduce production. Wright warned that lower refinery output could also reduce gasoline production.
“If you start putting barriers on the flow of trade, you will very quickly reduce production and have less supply,” Wright said. “We need more supply, not less supply.”
Interior Secretary Doug Burgum also questioned whether an export ban would lower oil prices. He warned that other energy-exporting countries could respond with retaliatory measures.
The US oil industry has also opposed the proposal. Todd Staples, president of the Texas Oil & Gas Association, said restrictions could affect domestic jobs and fuel supplies.
The impact could extend to Europe as well. European markets rely significantly on US diesel imports, while the region already faces structural shortages.
Jim Mitchell, director of oil trade analysis at Wood Mackenzie, said tighter US exports could hurt some US allies.
The debate comes as diesel prices create wider economic pressure. Diesel powers much of the trucking, farming, manufacturing, and construction sectors, so higher prices can increase transportation and production costs.
