President Donald Trump has authorized the use of lower-cost, dyed diesel fuel on public highways, a move designed to mitigate a historic surge in fuel prices ahead of the upcoming midterm elections. The decision comes as the national average for diesel exceeded $6 per gallon for the first time in September, a milestone driven by supply chain disruptions stemming from the wars in Ukraine and Iran.
According to Bob McNally, president of Rapidan Energy, American consumers are now spending approximately $700 million more daily on gasoline and diesel compared to the previous year. The White House estimated that allowing truckers to use the cheaper fuel could save them more than $100 per fill-up.
In addition to the fuel policy shift, the administration issued an order directing the Treasury Secretary, in coordination with the Department of Defense, to suspend the collection of federal excise taxes on highway diesel through the end of 2026. The suspension will apply without interest or penalties, and Treasury has been instructed to explore options for permanently eliminating the tax obligation.
The Trump administration attributed the price increases to constrained global supply and insufficient refining capacity, factors that have also elevated household energy costs. Under pressure from the President, who had previously considered banning U.S. fuel exports, the Group of Seven nations agreed to release 100 million barrels of diesel and crude oil reserves to stabilize the market.
Suspending taxes sounds great, but what happens when revenue is needed? This just kicks the can down the road.
$6 per gallon is insane. I hope this actually reaches the pump and doesn’t just vanish into bureaucracy.
Wait, isn’t using dyed diesel on roads illegal? This feels like a legal minefield waiting to happen.
Saving $100 per fill-up is huge for long-haul truckers. Finally, some relief on these absurd prices.