Trump administration weighs emergency diesel measures as prices near $6.50

  • The Trump administration is evaluating tax relief and temporary dyed-diesel use to ease domestic diesel prices and supply strains.
  • Diesel prices were cited at about $6.50 per gallon nationally and at record levels in Louisiana during peak harvest.
  • Louisiana, Alabama and Nebraska issued emergency declarations permitting, according to the broader account, commercial haulers to use untaxed off-road diesel on public highways.

The Trump administration is evaluating emergency measures to ease domestic diesel prices near $6.50 per gallon, including suspending the federal excise tax and temporarily allowing untaxed, red-dyed off-road diesel to be used on public highways. Louisiana Governor Jeff Landry declared a state of emergency as diesel prices reached records during peak harvest, while governors in Alabama and Nebraska issued similar declarations. Deliberations remain fluid, with no immediate federal action considered imminent. The review follows energy-market volatility after President Donald Trump supported restricting foreign fuel shipments, a step opposed by industry groups and European allies reliant on U.S. distillates. Oil executives favor temporary tax relief over export controls, while congressional timing and stalled biofuel-mandate changes complicate action. EIA data showed distillate inventories fell 400,000 barrels in the week ended September 18 and remained about 12% below the five-year average.

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