U.S. Interior Secretary Doug Burgum said a ban on oil or fuel exports would be unlikely to lower energy prices amid the Iran war. He warned that such a ban could trigger retaliation from other countries and hurt import-dependent states like California, which already has the nation's highest gas and diesel prices.
Interior Secretary Doug Burgum said a ban on U.S. oil or fuel exports would be unlikely to lower energy prices for consumers. Speaking Monday at a G20 meeting on energy in Houston, he said the administration would only weigh such a move if it believed it would actually lower prices.
Retaliation risk cited
Burgum, a Trump appointee, argued that cutting off oil exports could invite other countries to retaliate against gasoline or diesel shipments. He warned that could hurt consumers in states that rely partly on energy imports, singling out California.
According to Reuters: "We stop exporting product, and then somebody says, 'We're not going to export to California,'" Burgum said, describing the retaliation scenario.
California's refinery closures
Burgum said California has already shut several oil refineries, a move he said has helped push fuel prices higher there over the long term. He noted California already has the highest gas and diesel prices in the country, tying that to the state's own policies rather than to export flows.
Administration running low on options
Ahead of the midterm elections in November, the Trump administration has fewer levers left to bring down prices for diesel, which recently hit a record high above $6 a gallon and runs even higher in California. The White House is separately weighing use of the Cold War-era Defense Production Act to expand U.S. refining capacity.
Source: Investing.com (Reuters)
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