Trump may seek European diesel release
Washington: US President Donald Trump said that he may ask European countries to release some of their diesel stocks as his administration looks for ways to ease pressure on fuel prices amid disruptions to global supplies.
Asked during a brief exchange with reporters whether he would ask European nations to release some of their diesel stock to help bring prices down, Trump said: “We may do that.”
He added that “prices are coming down.”
Trump made the remarks during his trip to Texas and Oklahoma, where he was travelling for events focused partly on his administration’s economic and trade policies.
The comment comes as the administration weighs several possible responses to elevated diesel prices, including potential restrictions on US diesel exports.
Trump said in an interview Sunday that he was seriously considering such restrictions.
“Well, we’re thinking about it very seriously,” Trump said when asked about a possible diesel export ban.
“That can oftentimes lead to a little bit of an increase on gasoline for cars. So we’re looking at it very seriously. We may do it,” he said.
Trump attributed much of the pressure on diesel supplies to disruptions involving Russian refining capacity rather than solely to instability in the Middle East.
“The big problem is the refineries in Russia are being blown up,” Trump said in that interview.
“This isn’t really a Middle Eastern problem. This is more of a Russia problem, that Ukraine and Russia are going at it, and Ukraine is blowing up diesel refineries in Russia because they do a lot of the refining,” he said.
The administration has been examining whether restricting US exports could increase domestic diesel supplies and reduce prices for American consumers.
But such a step could also have consequences for international fuel markets because the United States is a significant exporter of refined petroleum products.
More than 30 US business, manufacturing and energy groups have opposed potential export restrictions, arguing that they could discourage refinery production and ultimately increase costs.
The latest option raised by Trump, seeking releases from European stocks, would represent a different approach aimed at increasing available supplies rather than limiting US exports.
Trump did not identify Thursday which European countries he might approach, how much diesel he would seek or whether his administration had already begun discussions with European governments.
Diesel prices are politically and economically sensitive because the fuel is extensively used by the trucking, agricultural, construction and industrial sectors. Higher diesel costs can feed through supply chains and increase transportation costs for goods.