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.
Truckers, farmers, and other diesel users in the US may receive relief from diesel tax payments, as the White House moves to alleviate fuel costs that could negatively impact the Republican Party ahead of the midterm elections. President Donald Trump signed an order on Monday at a rally in Grand Island, Nebraska, to waive the off-road requirement on tax-free red-dyed diesel for any use.
The tax, which stands at 24.4 cents per gallon, translates to nearly $60 on a 250-gallon fill, and the savings could exceed $100 per fill in states that follow the order. While the order does not abolish the levy, it delays payment and asks Treasury Secretary Scott Bessent to find ways, including legislation, to eliminate the obligation to pay the deferred amounts.
The relief applies mainly to those operating diesel trucks and farm vehicles, as most American cars run on gasoline. The average diesel price in the US is currently $6.32 per gallon, nearly 70% higher than a year ago due to rising fuel costs resulting from the Russia-Ukraine war and reduced global refining capacity.
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