Factbox-US states take steps to curb diesel and gasoline prices

US states are implementing various strategies to alleviate soaring diesel and gasoline prices, which have been driven by supply disruptions due to the US war on Iran, Russian refinery strikes, and dwindling global inventories. Diesel prices reached a record high of $6.53 per gallon last week, prompting the Trump administration and Republican candidates to explore ways to lower fuel costs ahead of the November midterm elections.

The White House is considering regulatory relief to allow broader sales of red-dyed diesel, which could allow buyers to avoid the federal fuel tax. States have already initiated measures to address the issue:

In Alabama, the state has suspended enforcement of restrictions on red-dyed diesel use for 120 days. California has suspended its seasonal summer-blend gasoline requirement and directed agencies to allow winter-blend gasoline production, import, distribution, and sale. Georgia has suspended both gasoline and diesel taxes for 30 days and lifted weight restrictions for commercial vehicles to reduce transportation costs.

Illinois has paused a 1.3-cent gasoline tax increase for six months. Indiana has suspended its gasoline tax. Kentucky reduced the gasoline tax by 10 cents, froze future tax hikes, and halted property tax increases for 2027. Louisiana will allow farmers and timber harvesters to use dyed diesel in highway vehicles. Massachusetts plans to file legislation suspending gasoline and diesel taxes for two months.

Michigan has temporarily waived an environmental rule to allow higher-vapor winter blends and E15 sales through the summer. Montana has waived hours-of-service rules for intrastate fuel haulers. Nebraska allows highway-registered vehicles to use untaxed dyed diesel without fines and has eased weight limits for seasonal crop transport.

Ohio has suspended its gas and diesel tax for 90 days, while Oklahoma has paused enforcement of all taxes, regulations, and fines on red-dyed diesel use in farm and highway vehicles for 120 days. South Dakota permits farmers and haulers to transport agricultural commodities at up to 10% above standard weight limits and has waived overweight trip permit fees.

Texas plans to expand the use of dyed diesel on its roads, increase allowable weight limits for fuel, agricultural, and timber, and suspend low-emission diesel fuel regulations.