US energy and manufacturing groups on Wednesday urged President Trump to reject calls to ban or restrict diesel exports, warning that such measures would reduce refinery output and push up fuel prices for American consumers.
Over 30 industry associations, including the American Petroleum Institute, American Fuel & Petrochemical Manufacturers and US Chamber of Commerce, said export restrictions would undermine US energy production and weaken the country's position as a global fuel supplier.
The groups, in a joint letter dated Sept. 23, said that US refiners are operating at full capacity as about 10% of global refining capacity remains offline, allowing the country to meet domestic diesel demand while supplying markets in Latin America and Europe. The letter also said US crude exports have helped keep overseas refineries running amid disruptions to oil flows through the Strait of Hormuz.
The energy and business groups said an export ban would force refiners to reduce operating rates to align diesel production with domestic demand, while also cutting gasoline and jet fuel output. That could leave consumers facing higher prices across several fuel markets, particularly in the US Northeast, which relies more heavily on imported fuels.
The groups also warned that restricting US fuel exports could prompt retaliatory measures from other countries and allow competing suppliers to gain market share. The letter said US energy exports provide both economic and geopolitical benefits by reinforcing the country's role as a reliable supplier to global markets.