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The White House is weighing tax relief on diesel sales alongside a possible export ban, with each option carrying different risks for fuel prices.
What has changed? · 28/09/2026, 18:55 UTC
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US senator Ted Cruz told leaders in the American refining industry that he had received assurances from the White House that the Trump administration would not ban US diesel exports, Bloomberg reported, citing people familiar with the conversation. Cruz attributed the assurances to the White House rather than President Donald Trump personally, and did not identify who had ruled out a ban. [1]
His reported remarks follow a Politico report that the administration was preparing a plan for a 90-day export ban. Reuters carried that account on 23 September; a White House official denied it later the same day. [2] [3]
US Energy Secretary Chris Wright also said nobody was considering an outright ban and that voluntary measures were being discussed. He argued that a ban would not work and could push up petrol and jet fuel prices. [3]
The US Energy Information Administration put the average retail diesel price at $6.529 per US gallon for 21 September, up from $5.599 on 31 August. [4]
The UK is discussing a possible halt to US diesel exports with American authorities and preparing for that possibility, Chancellor John Healey told BBC News at the Labour Party conference in Liverpool. He said the government was making provision for potential needs and had its own stocks, but gave no stock figure or details of the preparations. [5]
Donald Trump told a Fox News reporter on Sunday that he was considering a diesel export ban “very seriously” and might impose one, Reuters reported. A White House official told Reuters on Monday that no final decision had been made. [9] Trump’s remarks came after a White House official denied, on 23 September, a report that the US was preparing a 90-day ban. [11]
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The US supplied 31% of the UK’s diesel imports in 2025, government figures show. [7] The RAC said the average UK diesel price reached 199.18p a litre on Monday, just above its previous record of 199.09p in June 2022. [8]
Reuters reported on Monday that the White House was considering wider sales of red-dyed diesel as an alternative to a diesel export ban, citing two people familiar with the discussions. A White House official said no final decision had been made. President Donald Trump said on Sunday that he was seriously considering a ban. [9] [13]
The two options would work differently. Allowing more buyers to use red-dyed diesel could reduce the federal tax on eligible fuel purchases, depending on how the measure was designed and how much of the saving sellers passed on. Patrick De Haan, head of petroleum analysis at GasBuddy, told Reuters that letting truckers use it could cut their tax bill without increasing diesel supplies. [9]
A ban would have consequences beyond the US. Energy Information Administration figures show that the country exported an average of about 1.4 million barrels a day of distillate fuel oil in the first half of 2026. That category includes diesel and other fuel oils. [14] [17]
Goldman Sachs estimated that a ban could initially lower average US retail diesel prices by about 25 cents a gallon for each week it lasted, while storage space remained available. Once storage filled, the bank estimated upward pressure of about 30 cents a gallon on US petrol prices for each week of a ban. It also estimated a $3-a-barrel weekly rise in European wholesale diesel prices, potentially offset in part by releases from European strategic reserves. [20]
The Energy Information Administration forecast earlier this month that US distillate stocks would fall below 100 million barrels in September, linking low inventories to higher domestic diesel prices. The forecast underscores the supply pressure facing policymakers whichever option they choose. [18]