Trump expands tax-free diesel; experts doubt price relief
US President Donald Trump has expanded tax-free access to dyed diesel fuel, but experts say the move will do little to cut fuel costs.
Patrick De Haan of GasBuddy said the change could help truckers but would do little for farmers, who already have access to dyed diesel. “Taxes aren’t the problem, supply is,” he said.
The order follows an October 2 agreement by European countries to release 100 million barrels of diesel and crude from reserves to ease global prices. Trump also reversed his stance on a temporary US diesel export ban the same day.
Rebecca Babin of CIBC Private Wealth said the reserve releases would likely lower prices with “some benefit in the US”, but called the relief temporary. Released stocks would eventually need replenishing.
Diesel prices remain a key pressure point for transport and farming costs, and analysts say supply — not tax — is the binding constraint.
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