The Trump Administration Considered a Diesel Export Ban. Chevron’s CEO Called The Notion ‘Unwise.’

Chevron CEO Mike Wirth said a U.S. diesel export ban, which was considered by the Trump administration, would be "unwise" and there are "other options."

"Export bans, be they in the U.S. or in other countries, actually take supply off the global market and they run the risk of making the situation worse," Wirth told CNBC on Wednesday.

He went on to say that "the U.S. has been a reliable supplier to the world at a time when it needs it," and he thinks "it would be unwise for the U.S. to create questions in the minds of our allies and our partners as to whether or not we will be there with reliable supply when times are difficult."

The Trump administration appears to have moved away from the idea, however. Last week, G7 countries said they would release 100 million barrels of diesel from their stocks to help lower prices. And Trump is temporarily allowing tax-exempt red-dyed diesel to be used on U.S. highways.

Trump signed an executive order Monday temporarily expanding the use of red-dyed diesel, fuel normally reserved for off-road equipment and exempt from federal highway taxes. The administration is also deferring collection of the federal excise tax on highway diesel through the end of 2026, potentially giving the transportation industry additional relief as diesel prices remain near historic highs.

Red-dyed diesel is chemically similar to the diesel sold at highway fuel stations, but the dye identifies it as fuel on which highway taxes have not been paid. It is generally used in farm equipment, construction machinery, and other vehicles that do not operate on public roads.

The White House estimates the change could save truckers more than $100 each time they fill their tanks, potentially offering some relief to an industry that has been hammered by the surge in energy costs.

Diesel prices climbed above $6 a gallon nationally in September for the first time on record as disruptions linked to the wars in Iran and Ukraine tightened global supplies. The increase is particularly significant because diesel powers much of the U.S. freight system, meaning higher prices can ripple through supply chains and ultimately raise the cost of food, consumer goods and other products transported by truck.