Trump pushes red dye diesel waiver to lower fuel costs before midterms
With gasoline and diesel prices more than doubled since February's Iran conflict, Trump announces tax relief on off-road fuel weeks before the election.
What to know
- Fuel prices have doubled since February's Iran conflict disrupted Middle East oil supplies; the issue is weighing heavily on voters weeks before the midterms.
- Trump announced a waiver allowing tax-free red dye diesel on highways this week; recent modest price declines may partly reflect this and other administration actions.
- Experts warn the waiver risks supply depletion and creates tax compliance hazards once temporary relief expires, with fines for dyed fuel in tanks considered tax evasion.
“If suddenly people go out and they start consuming that diesel, that depletes their available supply as well.”
David Ruisard, Pricing manager, Argus · BBC News ↗
Donald Trump US PresidentDavid Ruisard Pricing manager, ArgusPatrick De Haan Head of petroleum analysis, GasBuddyMichael Pearce Chief US economist, Oxford Economics
How it unfolded 0 developments, newest first · click a bar or a number to jump
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Commodities analysts outline structural risks of red dye diesel waiver — David Ruisard from Argus explains that red dye is extremely difficult to remove from fuel tanks, creating compliance issues once the temporary relief ends. He also warns the waiver could deplete existing red dye supplies held by trucking companies and rail operators for off-road use.
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GasBuddy analyst credits Trump moves with modest recent fuel price declines — Patrick De Haan, head of petroleum analysis for GasBuddy, notes that recent modest declines in both gasoline and diesel prices are likely attributable to actions taken by the Trump administration over the past couple of weeks.
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Trump announces red dye diesel tax waiver at campaign stop — President Trump announces a waiver allowing so-called red dye diesel—fuel normally used off-road and exempt from federal taxes—to be used on US highways without facing federal levies. The move comes weeks before the midterm elections amid widespread voter concern over fuel and cost-of-living issues.
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US-Israel conflict with Iran begins, disrupting oil supplies — The conflict begins and effectively halts the usual flow of oil and refined products through the Strait of Hormuz, causing global oil supplies to become restricted. Gasoline and diesel prices subsequently more than double.