Trump Holds Urgent Meeting Amid ‘Secret White House Crisis’

President Donald Trump is weighing a potentially dramatic move to bring down diesel prices as soaring fuel costs squeeze farmers, truckers and American families just weeks before the November midterm elections.

The White House has been discussing whether to temporarily restrict or even suspend U.S. diesel exports, according to multiple reports, as officials search for ways to increase fuel supplies at home.

No final decision has been made.

A White House official said Trump wants to see prices at the pump come down and is considering several options before deciding what he believes will be best for American consumers.

The discussions have become increasingly urgent as diesel prices remain near historic highs.

According to the U.S. Energy Information Administration, the national average for on-highway diesel stood at about $6.38 per gallon for the week ending September 28. That was slightly lower than the previous week’s $6.53 average, but still far above levels Americans were paying before the latest global energy crisis.

Regular gasoline was averaging about $4.47 per gallon nationwide during the same week.

Diesel prices matter far beyond what truck drivers pay at the pump.

Diesel powers much of the country’s trucking industry, farm equipment, construction machinery and portions of the rail and shipping industries. When diesel becomes more expensive, those costs can eventually work their way into grocery bills and prices for other consumer goods.

The White House is now under increasing pressure to find relief.

The Financial Times reported Wednesday that administration officials have discussed several possibilities, including restrictions on diesel exports. U.S. allies, including Britain, have reportedly been warned that changes in American exports could affect supplies overseas.

But the proposal has sparked an intense debate inside the administration and the energy industry.

Supporters argue that keeping more U.S.-produced diesel inside the country could increase domestic supplies and bring prices down.

Opponents warn that the strategy could have unintended consequences.

American refineries produce gasoline, diesel, jet fuel and other petroleum products at the same time. Energy analysts have warned that interfering with diesel exports could eventually make it less profitable for some refineries to operate at full capacity.

That could reduce the production of other fuels and potentially push some prices higher.

Energy Secretary Chris Wright has publicly expressed concerns about an outright export ban and has instead discussed working voluntarily with refiners to increase the amount of diesel available in the United States.

Reuters reported last week that diesel futures dropped after reports surfaced that the administration was considering a 90-day export ban. The White House disputed reports that such a plan had already been finalized.

Trump, however, has made clear that he is willing to consider restrictions if he believes they would lower prices.

The debate is especially significant for America’s farm states.

Republican Sen. Chuck Grassley of Iowa has been among the lawmakers urging temporary restrictions on diesel exports, arguing that farmers are being hit particularly hard by higher fuel costs.

Grassley renewed his call on the Senate floor on September 22 while also pushing for expanded year-round sales of E15 gasoline.

Farmers can consume large amounts of diesel during planting and harvest seasons, meaning even relatively small price increases can add thousands of dollars to operating costs for larger farms.

The political stakes are also rising.

Republicans will defend their congressional majorities in the November 3 midterm elections, and some GOP lawmakers openly acknowledge that voters could hold the party in power responsible for high energy costs.

Tennessee Republican Rep. Tim Burchett told the Financial Times that Republicans would have difficulty escaping blame because they currently control the federal government.

The diesel crunch is tied to a much larger international energy crisis.

The continuing conflict involving the United States and Iran has disrupted oil and fuel shipments through the Middle East, while shipping through the Strait of Hormuz remains severely restricted.

The waterway is one of the world’s most important energy routes and normally carries a major share of internationally traded oil and natural gas.

At the same time, attacks on Russian refining infrastructure and other disruptions have tightened diesel supplies elsewhere in the world.

That combination has left the United States in an unusual position.

America is a major oil producer and petroleum exporter, but its fuel market is still connected to international prices. Some regions of the country also rely partly on imported fuel because of limitations in pipelines and domestic transportation infrastructure.

That means an export ban designed to help one part of the country could potentially create problems elsewhere.

The administration is pursuing other options as well.

The United States announced this week that it would make up to 40 million additional barrels of crude oil available through loans from the Strategic Petroleum Reserve. The move is part of an international effort to stabilize energy supplies following disruptions caused by the conflict in the Middle East.

The White House has also pushed European countries to release more fuel from their emergency reserves.

For now, Trump faces a difficult choice.

Restricting exports could provide consumers with some short-term relief if additional diesel remains inside the United States. But energy companies and some administration officials warn that a sweeping ban could distort refinery operations and ultimately create new supply problems.

With diesel still above $6 per gallon nationwide and the midterm elections approaching, pressure on the White House is unlikely to disappear anytime soon.

Whether Trump ultimately imposes an export restriction or chooses a less aggressive approach could have consequences not only for American drivers and farmers, but also for fuel markets around the world.