US Asks Oil Companies to Reduce Diesel Exports

US Energy Secretary Chris Wright is asking major oil refining companies to voluntarily reduce diesel exports. The government is trying to lower fuel prices domestically, though it does not plan to impose a full restriction on exports.

The average price of diesel in the US has risen to about $6.52 per gallon. Inventories are below 97 million barrels, 13% lower than the five-year average for this time of year. Disruptions caused by the wars in Iran and Ukraine are also contributing to the price increase.

The US is the world's largest diesel exporter. Oil industry representatives say that reducing exports could force refineries to cut production. This would also result in less gasoline and jet fuel being produced, which could drive up their prices as well.

It remains unclear how strongly the government wants to reduce exports and how compliance with the agreement would be monitored. According to industry representatives, companies have not greeted the initiative with much enthusiasm.

Source: Reuters