The Trump administration is weighing a ban on diesel exports to lower prices, yet internal policy divisions have now spilled into public view. Energy Secretary Chris Wright has stated plainly that such a ban would not work and could instead push up gasoline and jet fuel costs, placing him in direct opposition to the president's stance.

According to Politico on Wednesday, citing five people familiar with the matter, the administration is preparing a 90-day diesel export ban aimed at reducing persistently high energy prices, in response to political pressure facing Republicans ahead of the November congressional midterm elections.

Following the Politico report, U.S. diesel futures dropped sharply, falling more than 7% at one point. Meanwhile, European diesel futures climbed significantly higher.

But a subsequent Reuters report indicated that the U.S. is not actually preparing a 90-day diesel export ban. U.S. diesel futures recovered somewhat but did not reclaim the losses triggered by the Politico article.

Nevertheless, the open disagreement within the administration leaves the policy's direction deeply uncertain.

Speaking at The Economist's New York event that same day, Energy Secretary Chris Wright said a diesel export ban "definitely won't work," warning it would force refineries to cut production, in turn raising prices for gasoline and jet fuel. The Energy Department later issued a statement saying Wright is "fully aligned with the president and is jointly exploring every viable option to lower energy prices," an effort to downplay the rift.

Soaring diesel prices, mounting midterm pressure

U.S. diesel prices are at record highs. According to data from the American Automobile Association, the national average diesel price on Wednesday reached $6.52 per gallon, up 76% from a year earlier. The price surge is occurring against the backdrop of U.S.-Iran tensions and the Ukraine situation, with global diesel supplies remaining persistently tight.

The elevated fuel costs have drawn widespread complaints from farmers and other diesel users, and have become a core political headache for Republicans.

Agriculture Secretary Brooke Rollins has directly raised the diesel price issue with the president, and Republican lawmakers in competitive districts are also pressuring the administration to act. A White House official said Trump "wants to see lower oil prices and is evaluating all options."

Energy secretary: Ban would backfire

Chris Wright's opposition to the ban strikes at the heart of the policy's inherent contradiction. He said that without the ability to export diesel, refineries would face storage constraints and be forced to cut overall throughput, resulting in lower output of gasoline and jet fuel as well, which would only intensify the price burden on consumers.

Analysts at energy research firm TACenergy echoed this view in a Wednesday report, stating that "losing the export outlet will force many refineries to reduce run rates, and gasoline and other product output will fall accordingly, making the end result counterproductive."

According to data from the U.S. Energy Information Administration, refinery utilization last week stood at roughly 94% of capacity.

Wright said the administration is engaging with the refining industry in a "simpler, voluntary, cooperative manner" to boost domestic diesel supply, avoiding the "blunt instrument" that would squeeze refinery output. He did not disclose specifics of the approach, however, and said no decisions have been made. The administration is expected to announce policy measures on lowering fuel prices in the coming days.

Opposition extends beyond the Energy Department, with the Interior Secretary also issuing a warning

The dissenting voices are not limited to Chris Wright. Interior Secretary Doug Burgum has already publicly warned that an export ban could provoke retaliation from other countries, affecting U.S. states that rely on imported fuel, with California hit particularly hard.

Beyond this, Wright also offered praise for the administration's Venezuela policy. He said the U.S. is actively encouraging energy firms to expand production and investment in that country.

Wright noted that several companies are currently interested in investing in Venezuela to repair oil infrastructure severely damaged over the past two decades by mismanagement, corruption, and U.S. sanctions. "Some companies will reach deals, and tens of billions of dollars are flowing in," he said.