Diesel could hit $4 a litre if Trump bans US fuel exports
An energy analyst warns Australia could face diesel rationing and prices above $4 a litre if Trump blocks US exports.
Trump has backed calls from US politicians to ban diesel exports. He's aiming to cut fuel costs before November midterm elections.
An energy analyst at MST Marquee warned this would hit Australia hard. Rationing could start within weeks.
Prices could spike 50% to more than $4 a litre. Australia doesn't buy US diesel directly.
But it relies heavily on global supplies. Australia is the world's largest diesel importer in absolute terms and uniquely exposed.
Mining and agriculture are the backbone of the economy. Both depend on cheap diesel.
The US currently exports roughly 1.3 million barrels of diesel daily. This is about a quarter of its refining output.
- 1.3 million barrels
- Daily US diesel exports
- 50 per cent to more than $4 a litre
- Potential price spike
- November midterm elections
- Election timing
- Saul Kavonic, MST Marquee
- Analyst
Why it mattersA diesel shortage would immediately raise costs for farmers, truck drivers, and miners. It would also raise costs for anyone buying goods transported by road or heavy machinery.
AustraliaAustralian farmers, miners and transport operators face potential fuel rationing and dramatic price rises if the US ban goes ahead, forcing the government to activate emergency fuel restrictions.
✓ Claims checked against the source. checked 23 h ago
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