Brussels has pushed back against a US proposal to curb diesel exports, even as the White House insists it's aiming for targeted restrictions rather than an outright ban.
The European Union has hit out at a possible US diesel export ban being considered by President Donald Trump, calling it a "bad idea" that could damage both economies.
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Trump signalled support for a ban this week as surging fuel prices — driven by the war in the Middle East — threaten to cost his Republican party control of Congress in November's midterm elections. But European Commission spokesman Olof Gill said Brussels viewed the plans "with concern".
"We believe this is a bad idea," Gill told a press conference. "We believe it potentially can have a negative impact on both sides. We're making that point to our US counterparts at the highest level."
Europe has also grappled with high fuel prices since the US-Iran war began in late February, but it is far more reliant on imports than the US. The average diesel price across the EU's 27 member states hit a record €2.23 per litre, according to an AFP analysis of commission data published on Thursday. The US supplied around 50% of the bloc's diesel imports in August.
"We expect close partners to consult each other before taking measures that affect shared markets," Gill added.
Industry pushes back
The comments came after US Energy Secretary Chris Wright sought to clarify the administration's plans on Wednesday, saying the US would not impose an outright ban but would instead introduce restrictions on diesel exports. Speaking to WSJ's Journal House on the sidelines of the UN General Assembly, Wright said the US needed to keep global markets supplied while changing the trajectory of domestic prices, and that any measures would be voluntary.
"We're trying to avoid a blunt hammer of a government policy, understanding the complexity of refining," he said.
Trump first floated the idea of restricting diesel exports on Tuesday, prompting alarm across the oil and gas industry, which has warned that curbing exports could trigger unintended consequences and push up domestic prices for both diesel and petrol.
Wright's comments were light on detail, and some industry lobbyists have noted that any coordination among refiners over restrictions could raise antitrust concerns.
Industry trade groups have voiced strong opposition, marking one of their most forceful pushbacks against the administration since Trump returned to office. The American Exploration & Production Council said "policymakers should reject this short-sighted approach and instead focus on solutions that will actually lower prices at the pump."