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Trump’s Diesel Supply Moves Amid Near-Record Prices
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Trump’s Diesel Supply Moves Amid Near-Record Prices
On October 9, U.S. diesel prices were near record highs, up about 70 % since the U.S.–Israeli war on Iran began. President Donald Trump has taken two high-profile actions to increase supply: pressuring allies to release emergency reserves and issuing an executive order that permits the use of tax-exempt red-dyed diesel on public roads through the end of the year. Despite these steps, the average price reported by the American Automobile Association (AAA) was $6.28 per gallon on Thursday, and the measures have not yet lowered retail costs.
Context: Global Fuel Crunch and Domestic Political Stakes
The wars in Iran and Ukraine have created an unprecedented global shortage of refined products, tightening the market for diesel. The high cost of fuel is a key concern for voters in the upcoming November 3 midterm elections, where the Republican Party seeks to defend narrow congressional majorities. A Reuters/Ipsos poll cited in the article notes that the cost of living is the top issue for voters and that President Trump’s approval rating sits at a record-low 32 %.
Official Statements & Responses
A White House official said the administration negotiated to front-load previously pledged barrels of oil and refined products, prioritizing diesel for immediate release. Treasury Department guidance is expected to clarify the tax-exempt status of red-dyed diesel, allowing drivers to use it without federal tax or penalty. The administration frames the actions as temporary relief while pursuing longer-term energy policies.
Criticism & Opposition
David Fialkov, president of the National Association of Truck Stop Operators (NATSO), warned that most reputable retailers are unlikely to sell dyed fuel through non-traditional channels. Caspian Conran, lead economist at Baringa, argued that “the fundamental problem facing the US is not taxation but an exceptionally tight global market for refined products,” describing the measures as short-term steps that may provide only a few weeks of relief.
Verbatim Quotes
- “Aside from a recession that hammers consumption, the only thing that can prevent oil prices from rising further and put them on a sharp downward trajectory is a durable end to conflicts in the Arabian Gulf and between Russia and Ukraine,” — Bob McNally, president of Rapidan Energy Group
- “The fundamental problem facing the US is not taxation but an exceptionally tight global market for refined products,” — Caspian Conran