Trump ‘very seriously’ eyeing off diesel export ban in potential blow for prices

US President Trump is considering banning diesel exports as his domestic support wavers following record-high fuel prices amid the war in Iran.

It comes after the president called for a ban ahead of a meeting with his Ukrainian counterpart on Tuesday. US Treasury Secretary Scott Bessent and Energy Secretary Chris Wright have both confirmed the administration is examining the proposal.

Diesel prices have reached record highs in both the US and Europe as the war in Ukraine and Iran cut exports from some of the world’s biggest products such as Russia and Saudi Arabia.

In Australia, which consumes the most diesel per capita, the price of diesel has risen by seven per cent to nearly $3 a litre, according to the federal government’s latest fuel data. Australia does not directly import diesel from the US, instead relying on refineries in the Asia-Pacific, such as South Korea, Japan and Singapore.

Treasurer Jim Chalmers said a ban would be “a very concerning development for the global economy”. The government also faces questions on whether it would reintroduce its fuel excise cut, which was ruled out by Deputy Prime Minister Richard Marles who said the government was not considering the policy.