11 hrs ago
Trump Weighs Diesel Price Measures Ahead of Midterm Elections
President Donald Trump may announce steps to try to lower diesel costs.
He is expected to discuss them at a campaign event in Nebraska.
One proposal would ask the Treasury Department to review some diesel-related taxes.
Another would encourage states to let more people use tax-exempt red-dyed diesel.
States might also be encouraged to pause some fuel taxes.
Farmers are upset because diesel costs are high during harvest time.
One analyst said farmers already use tax-exempt diesel, so the tax changes may not help them much.
Another warned that less tax money could mean less money for roads.
The report said Trump had recently ruled out a proposed ban on diesel exports.
Trump is expected to announce measures intended to ease diesel costs at a campaign appearance in Nebraska.
The proposals include a Treasury review of some diesel-related taxes and expanded access to tax-exempt red-dyed diesel.
States would also be encouraged to suspend some fuel taxes, though some Republicans oppose the idea over lost infrastructure revenue.
High diesel costs have frustrated farmers and ranchers during harvest season and added to inflation.
Analysts said tax measures may offer limited relief to farmers and could put long-term transportation funding at risk.
- Who
- President Donald Trump and his administration; farmers, ranchers, and state governments are affected.
- What
- Trump is expected to announce proposed measures to ease diesel costs, including tax reviews and expanded access to tax-exempt dyed diesel.
- Where
- At a campaign appearance in Nebraska; the proposed measures concern states across the United States.
- When
- The report was published October 5, 2026; Trump was expected to promote the measures at an upcoming campaign appearance.
- Why
- High diesel prices have burdened farmers and contributed to inflation, creating a political concern for Republicans ahead of the midterm elections.
Arguments for tax relief
Concerns about tax relief
Potential reduction in fuel costs
Arguments for tax relief
Supporters of the proposed steps see tax reviews, expanded dyed-diesel access, and possible state tax suspensions as ways to ease fuel costs.
Concerns about tax relief
Fuel analyst Patrick De Haan said federal action could help road users but would offer limited relief to farmers, who already use tax-exempt dyed diesel.
Effects on infrastructure funding
Arguments for tax relief
The measures are being considered as a way to address high fuel costs affecting farmers and other users.
Concerns about tax relief
Some Republicans oppose suspending fuel taxes because states depend on the revenue for infrastructure. Analyst Denton Cinquegrana warned that reduced collections could delay road repairs.
Key facts
- Expected announcement
- Trump is expected to promote fuel-cost measures during a campaign appearance in Nebraska.
- Possible federal action
- The Treasury Department may review certain diesel-related taxes.
- Dyed diesel proposal
- States would be directed to expand access to tax-exempt red-dyed diesel.
- State tax proposal
- States would be encouraged to suspend some fuel taxes.
- Diesel price
- AAA said the average diesel price was $6.32 per gallon on Monday, still significantly above the prior year.
- Existing state measures
- Ten states representing about one-third of U.S. diesel sales had expanded access to dyed diesel by Friday.
- Farmer assistance
- Agriculture Secretary Brooke Rollins said Trump would announce additional short-term assistance for farmers in Nebraska.
Quotes
Denton Cinquegrana
Chief oil analyst at Dow Jones Energy.
“When you’re not collecting taxes, you’re just kicking the can down the road, because you have to fix roads and stuff like that.”
news18.com
“But farmers already use dyed diesel and are still paying record prices. Taxes aren’t the problem, supply is.”
news18.com
Sources
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