Trump defers diesel tax for truckers as fuel costs bite weeks before US midterms
US President Donald Trump has signed an executive order deferring tax payments on red-dyed diesel used on public roads, as near-record fuel prices linked to the Iran war weigh on the Republican Party weeks before the midterm elections.
US President Donald Trump deferred diesel tax payments for truckers and other fuel users as fuel prices rose ahead of the US midterm elections next month. The White House announced the measure at a rally in Grand Island, Nebraska, where Trump campaigned for Republican voters. The order allows anyone to purchase tax-free dyed diesel for any reason, though traditionally it is reserved for tractors and other off-road machinery.
The federal diesel tax is 24.4 cents per gallon, so the savings could be over $100 per fill. A large truck filling up with 250 gallons would see a tax avoidance of about $1,580 at the average price. However, the order postpones payment, not abolishing the tax. Treasury Secretary Scott Bessent will explore options, including legislation, to potentially eliminate this obligation.
The relief mainly benefits those operating diesel trucks and farm vehicles, as most American cars run on petrol. The average diesel price in the US stood at $6.32 a gallon on Monday, edging close to the record high of $6.53 set earlier in September. The price surge is attributed to the Russia-Ukraine war, reduced global refining capacity, and Democrat-led states shutting down their refineries for "green energy" policies.
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