Washington urges Paris and Berlin to tap emergency diesel reserves to cut costs
The United States has requested that France and Germany release quantities of diesel from emergency stockpiles to help lower global fuel prices, warning they could otherwise face a potential US ban on diesel exports. This warning represents an escalation of pressure on Europe as President Donald Trump considers a potential export ban to lower fuel prices in the US ahead of the congressional midterm elections in November. The average price of a gallon of regular gasoline in the US was four dollars and forty-three cents, while diesel reached six dollars and forty-one cents, according to the American Automobile Association. Previously, reports indicated deep frustration within the US administration with France and Germany, whom US officials believe have not fully committed to prior pledges to draw from emergency oil stockpiles. One source, a US official, stated that it is in Europes interest to cooperate with the US in finding multiple pathways to boost refined product supplies and lower costs for consumers. A second source based in a European capital noted that the US asked the European Union to release one hundred twenty million barrels of diesel over the next six months. Trump held emergency talks with advisers over past days to discuss banning diesel exports or taking other measures to contain the fuel crisis, raising concerns among Washington allies who rely on US diesel exports, notably Britain. Persons familiar with the discussions told the Financial Times that Trump aides presented options including restrictions on diesel sales abroad, while administration officials briefed foreign allies, including Britain, on potential supply disruptions. A White House official told the paper that Trump is weighing all options on the table to lower domestic fuel prices, adding that no decision has been made on suspending exports. Trump faces a pressure battle with Republican allies concerned about the political fallout of high diesel prices, which have harmed farmers and other US industrial sectors, alongside oil company executives seeking to maintain profitable exports. Republicans from agricultural states, led by Senator Chuck Grassley of Iowa, are pushing for an export ban out of fear the party will face a backlash in the midterms unless fuel prices fall, while polls showed a decline in voter views on Trumps handling of the economy, his war with Iran, and inflation. Representative Tim Burchett told the Financial Times that political repercussions could include Republicans losing the majority. Burchett, who proposed legislation to ban diesel exports, added that they will bear responsibility for rising prices whether they deserve it or not since they are in power and it is hard to escape responsibility. A senior energy sector official familiar with White House discussions said an export ban was on the verge of happening last week after Grassley and senior Republicans from farm states urged the administration to stop the bleeding.
