Late Friday, according to people familiar with the private call, Senator Ted Cruz told refining leaders that, per the White House, US diesel exports would not face a ban from the Trump administration. Cruz, a Texas Republican, said the assurance came from the White House rather than directly from President Donald Trump and did not specify who delivered it, the people said. Representatives for Cruz and for the American Fuel and Petrochemical Manufacturers Association, which hosted the discussion, did not provide an immediate comment despite requests.
Diesel costs have surged, with retail prices setting a new high of $6.53 per gallon earlier this week. In response, Trump said earlier this week he asked his staff to evaluate a potential diesel export ban after rural and farm-state lawmakers urged limits to help cap pump prices. A White House official said the president wants prices at the pump to fall and is looking at every option.
That said, for months some of Trump's senior deputies have warned that restricting exports could backfire. Trump has also shown he can embrace unorthodox moves even without full buy-in from top aides, and he remains the final decision maker.
No single approach has been chosen. Officials are still assessing the economic impact of a potential short-term export ban while exploring other ways to reduce costs. One idea under consideration is expanding access to dyed red diesel, which is typically restricted to off-road uses and is tax exempt.
Allowing broader use on and off the highway could effectively pause some excise taxes, including the roughly 24 cents per gallon federal rate. The savings would flow to farmers, truckers, and other diesel users. Industry representatives have also proposed excluding red diesel when tallying the production volumes used to compute refiners' Renewable Fuel Standard obligations and letting farmers buy the exempt fuel.
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Some industry estimates suggest that change could shave about 30 cents per gallon.
During the week, Energy Secretary Chris Wright emphasized that the administration is not moving forward with a broad export ban and urged voluntary steps by industry to boost supply.
If the administration widens access to red diesel or tweaks Renewable Fuel Standard treatment, freight and farm fuel costs could ease, which can filter into everyday prices. The wild card is timing and whether the White House ultimately chooses a short-term export curb as part of the mix, since the president is still weighing all options.
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