White House weighs red-dyed diesel expansion as US prices hit $6.53

  • White House considers expanding sales of red-dyed diesel to ease US fuel costs.
  • $6.53 per gallon marked the US diesel price record last week.
  • Analysts say broader access would not increase supply or alter wholesale diesel prices.

The White House is considering broader sales of red-dyed diesel, a tax-exempt fuel normally used off-road, as US diesel prices reach a record $6.53 per gallon. Supply disruptions linked to the US conflict with Iran, Ukrainian strikes on Russian refineries and declining global inventories have driven the increase. The administration has also considered a blanket diesel export ban, voluntary export limits by refiners and calls for the European Union to release emergency diesel stocks before November's midterm elections. Red-dyed diesel is almost chemically identical to highway diesel, but its red marker shows that highway fuel taxes have not been paid. Analysts say expanding access would not increase domestic production or change wholesale prices, while mainly reducing tax revenue.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.