Energy secretary warns oil industry as diesel debate rages

Energy Secretary Chris Wright attends the G20 Ministerial Meeting on Energy Abundance in Houston on Sept. 15. (Mark Felix/Bloomberg)

Energy Secretary Chris Wright told oil industry leaders to brace for possible U.S. curbs on diesel exports amid an intensifying debate within the Trump administration over such a move. 

Wright’s message was delivered to company executives in calls late Sept. 22, according to people familiar with the matter, hours after President Donald Trump said he’d encouraged administration officials to consider diesel export restrictions. 

READ MORE: Skyrocketing diesel prices rattle midterm elections

Possible curbs remained under discussion Sept. 23, but no final decision has been made, with key Trump aides divided over the idea and oil executives warning the White House that any ban would ultimately lead to higher costs worldwide. The internal debate and calls with industry leaders were described by people familiar with the matter who asked not to be named because the conversations were private. 

The differences among Trump’s advisers over the idea and the industry opposition demonstrate the president’s few good options to tame fuel prices before the November midterm elections, which have been dominated by voters’ cost-of-living concerns. While a diesel export ban may offer some relief, that would be short-lived and the havoc on energy markets risks counteracting any benefits, critics warn.

Wright on Sept. 23 instead highlighted a possible voluntary solution to that dilemma, saying the Trump administration was looking to help industry independently boost diesel supplies even in the absence of a government ban on foreign sales of the fuel.

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“We are working with the industry, sort of, for a more cooperative effort to increase the supply of diesel in the United States and stop the upward price pressure,” Wright said at an Economist event. “But that can be done in a simpler, voluntary, cooperative fashion, without using blunt instruments that would reduce refining throughput.”

Later, Wright was even more explicit, arguing a blanket ban on diesel exports was off the table. 

“Nobody wants a full blanket ban or zero exports of diesel,” Wright said at a separate New York Times event. “That’s not being discussed. What’s being discussed is what’s the most efficient way to get more diesel into the United States of America and continue maximum flows of gasoline and jet fuel and all that.”

Calls with industry

Wright called industry executives to alert them to the serious consideration of export curbs. The conversations were described as key to encouraging possible industry support for voluntary options that could head off an outright ban, people familiar with the matter said.

A White House official, separately, disputed a Politico report that the administration was drafting a plan for a 90-day diesel export ban, calling it “fake news.” Administration officials also reached out to some industry stakeholders to throw cold water on the report, according to people familiar with the matter. 

Administration deliberations over potential diesel export curbs have intensified, with surging prices for the fuel seen jeopardizing Republicans’ efforts to hold onto their House and Senate majorities in the midterms. A steady drumbeat of pleas from Republican lawmakers for some kind of a ban — including Sens. Chuck Grassley of Iowa and Dan Sullivan of Alaska — also have fed the debate. 

Other Republicans, including Sen. Kevin Cramer of North Dakota, have said they oppose an export ban.

Retail prices for diesel, which is used widely to power freight traffic and farm equipment, hit record levels this week, averaging $6.52 a gallon nationwide, according to the auto club AAA. In futures, U.S. prices rose Sept. 24 after dropping 3.4% on Sept. 23. European diesel extended gains amid fears of a loss of flows from the region’s biggest supplier.

Administration discussions have been intermittent for weeks. But Trump’s acknowledgment of the possibility Sept. 22 — followed by Wright’s conversations with oil executives — galvanized immediate pushback from the industry.

In calls Sept. 23 with lawmakers and administration officials, executives were amplifying warnings about the potential risks, including that export curbs would provide only very short-term price relief before backfiring in the form of higher costs for diesel, and gasoline too. Price discounts could disappear within days as refineries and oil producers pare output, industry leaders told officials. 

They also stressed potentially global economic repercussions, including higher diesel prices for U.S. allies in Latin America and Europe. Part of the message to the White House was that depriving the world of U.S.-made diesel could touch off a recession in Europe that swiftly reaches U.S. shores, people familiar with the matter said. 

Industry leaders also told the administration any export limits would have to come alongside an expansion of an existing Trump waiver of longstanding Jones Act requirements mandating the use of U.S.-built and -operated ships to carry cargo among domestic ports, some of the people familiar with the matter said.

I hope WH doesnt listen 2 Big Oil who claim diesel export ban wont work Big Oil doesnt need 2 charge sky-high diesel prices 4 Iowa farmers + truckers just filling up They shld cut price 4 US diesel&get the $$ frm other countries IF U CAN EMBARGO CHIPS U CAN EMBARGO DIESEL

— Chuck Grassley (@ChuckGrassley) September 23, 2026

Grassley took aim at industry lobbying on Sept. 23, using a social media post to urge the White House to shun the advice of “Big Oil.” Energy giants don’t need to charge sky-high diesel prices for Iowa farmers and truckers, Grassley said, adding that if chips could be embargoed, so could diesel.

A number of administration officials, including Wright and Interior Secretary Doug Burgum, have for months emphasized the potential negative consequences of a ban. While Agriculture Secretary Brooke Rollins has voiced support, Treasury Secretary Scott Bessent is cool on the idea, people familiar with the matter said.