Trump Nixes Diesel Export Ban
It seems like the 47th president is in the news every single day, and today is no different. On October 2nd, President Trump announced that there would not be a ban on diesel exports.
Details
Recently, there were rumors going around that to keep diesel prices from spiraling even further out of control than they already have that Trump would announce an embargo on exporting diesel fuel, requiring instead that it solely be used within the borders of the United States. He has since changed his mind and has confirmed that it will not happen.
What caused him to change his mind? Other countries’ formal decision to export more of their own diesel fuel to the USA. The Group of Seven Nations (comprised of the USA, Canada, France, Italy, Japan, Germany and the United Kingdom) announced that they are working to export more of their fuel to their ally countries, and in response President Trump announced the United States will also be playing ball.
“Europe has a lot of diesel and they’re going to be making a major world contribution — and so are we,” Trump told reporters at the White House. “And we’re not going to be doing the export ban.”
Conclusion
So what does all of this mean for the average trucker? Diesel prices will not be skyrocketing in the long term as the supply of diesel within the USA starts to dwindle out, but the impact on prices being slashed for diesel will be minimal because of the transportation costs associated with moving barrels of fuel from across the Atlantic and Pacific. Unless countries such as Japan and Germany are planning to reduce their prices significantly to get an edge in American markets, fuel companies here still have the advantage through proximity to their buyers.
Ultimately, however, the free flow of oil products across the globe assures that we will not be suffering any diesel shortages any time soon, which may have been a possibility had a diesel export ban existed for months or even years. Despite the United States being a net exporter of crude oil, the mismatch between what type of oil we pull out of the ground and what we are apt to refine could have led to problems down the road.
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