US President Donald Trump has stated he would back a ban on diesel producers selling overseas, as surging fuel prices impact drivers ahead of midterm elections. Diesel prices in the US are hovering near a record $6.45 per gallon on average, according to the American Automobile Association (AAA).
The proposal aims to shield US consumers from rising costs, but it could trigger significant economic waves globally. The US is a major energy producer, with domestic refineries producing approximately four to five million barrels of diesel daily. Americans consume about 3.6 million barrels, with the remaining 1.2 to 1.5 million barrels exported, making the US a vital global supplier.
Between 60% and 70% of US diesel exports go to Latin America, while significant volumes also head to European countries like France, the Netherlands, and the UK. In the UK, diesel pump prices have reached an all-time high, leading to warnings about logistics costs and household budgets.
UK Chancellor John Healey has informed BBC News that the UK is in discussions with US authorities regarding a potential diesel export ban and has begun preparations for such a scenario. Energy analysts warn that cutting off American supply could cause international prices to skyrocket, potentially increasing global freight, food, and industrial costs, and feeding inflation back into the global economy.