U.S. Interior Secretary Doug Burgum said on Monday that a ban on U.S. oil or fuel exports would be unlikely to help lower energy prices for consumers amidst the Iran war.
“We would consider an export ban if we thought that actually might lower prices, but that’s not the case,” Burgum told reporters at a G20 meeting on energy in Houston.
Burgum, an appointee of President Donald Trump, said that bans on oil, gasoline or diesel exports could lead to retaliatory actions from other countries, which could hurt consumers in states like California, which depends partially on energy imports.
“We stop exporting product, and then somebody says, ‘We’re not going to export to California,'” Burgum said.
Burgum said that California already has shut several oil refineries, which over the long term has helped raise fuel prices there.
“California already (has) the highest prices in the country for gas and diesel anyway, because of their policies, we wouldn’t want… to exacerbate that,” Burgum said.
Ahead of the midterm elections in November that will decide control of Congress, the Trump administration is running low on options to lower prices for diesel, which recently hit a record high above $6 a gallon and which is even higher in California, and for oil and gasoline.
The White House is weighing how to use the Cold War-era Defense Production Act to expand U.S. refining capacity.
(Reporting by Georgina McCartney and Sheila Dang; Writing by Timothy Gardner; Editing by Will Dunham)