Wyoming industry leaders and U.S. Sen. Cynthia Lummis say they oppose a 90-day ban on diesel exports reportedly proposed by Trump’s White House, saying cutting off the supply could backfire and drive fuel prices even higher instead of lower.
Tom Haygood, a service writer at Aaron’s Semi Repair in Rock Springs, said he has watched rising diesel prices put Wyoming trucking companies in a bind, choosing between filling the tank and taking care of engine maintenance.
“We have noticed people not doing as much as they would want to do as far as fixing their truck,” Haygood said. “You’ve always got littler things that need fixed or serviced. But they might hold off on their service until the next go-around.”
Multiple national news outlets are reporting that the Trump administration is preparing a plan to ban U.S. diesel exports for 90 days in a bid to bring down energy prices weighing on Republicans ahead of the midterm elections.
Chris Wright, the U.S. Secretary of Energy, has since denied the report, saying that the administration is pursuing a voluntary approach instead.
While no ban has been announced, Wyoming industry leaders are already pushing back, warning that the idea could backfire.
Market Tremors
Ryan McConnaughey, vice president and director of communications for the Petroleum Association of Wyoming, told Cowboy State Daily that PAW signed a joint letter Wednesday opposing a ban, warning that prohibiting U.S. diesel exports could cause global shakeups.
“Right now, there’s under capacity of production outside of the U.S.,” McConnaughey said. “So U.S. producers are really meeting the need for global diesel supply. Capping that or disallowing that export could send tremors through the market for diesel fuel.”
The letter, addressed to President Donald Trump and signed by 36 business and industry groups, including the U.S. Chamber of Commerce, argues that a ban would force refiners to cut production, driving up prices for gasoline and jet fuel as well as diesel, and could prompt retaliation from other countries.
“We urge you to reject calls to ban or otherwise limit the exports of diesel and other products that have made the U.S. energy industry so strong,” the letter states. “Export bans would lead to less fuel production, tighter supplies, and rising costs for American families, farmers, and truckers.”
While Trump said Tuesday he supports the temporary ban on U.S. diesel exports, Sen. Cynthia Lummis, R-Wyoming, a Republican he endorsed for re-election, does not share his view, her spokesperson Joe Jackson told Cowboy State Daily in an email.
"Senator Lummis opposes a ban on U.S. diesel exports,” Jackson said. “She shares the frustration over high diesel prices but believes a ban would disrupt supply and drive up costs for both diesel and gasoline in the long run.”
Sen. John Barrasso, R-Wyoming, was noncommittal when NBC's Kristen Welker asked him on "Meet the Press" over the weekend whether he would support a ban, saying only that the president "will consider a number of things."
Rep. Harriet Hageman, R-Wyoming, did not respond to Cowboy State Daily’s request for comment by publication time.
‘Tough Time’
Travis Deti, executive director of the Wyoming Mining Association, said he’s not sure how an export ban would change the price of fuel, but that the local industry is already hit hard by rising costs.
“It’s a tough time to be in the industry right now with the diesel prices as high as they are,” Deti said.
Deti said he’d only heard of the potential export ban in passing, and that none of his operators had raised concerns about it yet. Ultimately, he said, the cost of fuel has to fall before customers will see lower prices on the products it helps produce and move.
“The mining industry in Wyoming uses an awful lot of diesel,” Deti said. “When prices are high, like they are right now, it drives up the cost of production, transportation and, in the end, the consumer is going to pay for that depending on the product.”
According to data from AAA, the average price of diesel per gallon in Wyoming was $6.26 on Wednesday.
That’s up from the $5.94 average last week, and almost 75% higher than the average of $3.59 a year ago.
Whether a ban comes, Haygood said the strain is already having ripple effects because when trucking companies have less to spend on vehicle upkeep, repair shops see less business.
“It’s hard on everyone right now,” Haygood said.
Emma Jane Jackson can be reached at emma@cowboystatedaily.com.
