Key facts
- US diesel prices averaged $6.28 per gallon, up nearly 10 cents in the latest week.
- The administration has offered $8 billion in new farm aid, pushing total government payments to farmers to a record $55.4 billion this year.
- The IRS has temporarily waived reporting requirements and penalties for truckers using red-dyed diesel, but the federal tax remains.
President Donald Trump is deploying a range of expensive and politically contentious measures to address rising diesel prices ahead of the November elections. These efforts include billions in aid to farmers, relaxed rules for truckers, and eased sanctions on Russian fuel, yet diesel prices have continued to climb.
US diesel prices rose nearly 10 cents a gallon in the latest week to an average of $6.28, according to the Energy Information Administration. The political pressure is particularly acute in Farm Belt states where rising fuel and fertilizer costs are fueling discontent among core supporters.
Trump signed an executive order allowing red-dyed diesel, typically for off-road use, to be used in highway vehicles temporarily avoiding certain federal tax reporting. However, the IRS has not eliminated the federal diesel tax, leaving uncertainty for fuel sellers. The administration also announced $8 billion in new farm aid, pushing total government payments to farmers to a record $55.4 billion this year.