What happened
President Donald Trump is set to sign an executive order aimed at reducing diesel fuel costs. The order will instruct the Treasury Department to review taxes that contribute to the high consumer price of diesel fuel. Additionally, it will direct states to increase the supply of tax-exempt red-dyed diesel, which is used in farming, construction, and other critical sectors.
According to reports, the order will also encourage states to temporarily waive certain fuel taxes and limitations on dyed diesel. This move is intended to help alleviate the pressure on diesel prices, which have been driven up by factors such as the war with Iran and Ukrainian attacks on Russian refineries.
The average price of diesel fuel currently stands at $6.32 per gallon, according to AAA. Some states have already taken steps to cut taxes or allow wider use of dyed diesel, and federal actions could potentially save truckers around 60 cents per gallon.
The Trump administration's decision comes as Europe has agreed to release a large amount of diesel oil, with 100 million barrels set to be released. The US has also seen an increase in diesel exports, although the new policy does not include a ban on shipping diesel overseas.
