US Energy Secretary Chris Wright has publicly rejected proposals to prohibit US diesel exports. Speaking at an event in New York on Wednesday, Secretary Wright stated that imposing an export ban would be counterproductive, ultimately inflating the costs of gasoline and jet fuel.
According to a Reuters report, Wright described an export prohibition as a "blunt tool" that would prove ineffective. He explained that restricting exports would result in an oversupply of diesel within domestic refineries.
This surplus would compel refiners to reduce their operational output. Secretary Wright cautioned that diminished refinery activity would subsequently tighten the supply of other fuels, consequently driving up their prices.