Trump announces steps to lower high cost of diesel

President Trump announced on Monday that his administration will take a series of steps aimed at lowering high diesel costs.

The president had been expected to announce a directive aiming to increase the availability of red-dyed diesel. This diesel simply has red dye added to it to signal that it is tax exempt and is typically used in machines such as farm and construction equipment.

“I’m going to sign a historic executive order to officially waive the off-road requirement, and allow anyone to purchase tax-free red dyed diesel for any reason,” Trump said before calling on aide Natalie Harp to bring the order on stage for him to sign.

Trump signed the order at a rally for Nebraska Sen. Pete Ricketts (R) and Gov. Jim Pillen (R). Ricketts’ reelection bid in particular has become increasingly competitive in recent weeks.

“So Pete and Jim, this should absolutely assure your election,” the president said.

Trump was also expected to announce a Treasury Department review of diesel taxes during his speech at a campaign rally in Nebraska.

The moves come as diesel prices have reached record highs in recent weeks and put a strain on industries that use the fuel, including agriculture and trucking. As of Monday, diesel averaged about $6.32 per gallon, according to AAA.

Tom Kloza, chief oil analyst at Gulf Oil, told The Hill that he doesn’t expect that increasing availability of red-dyed diesel will make a significant difference in the price overall.

“This is really a cosmetic gesture,” Kloza told The Hill ahead of the actual announcement based on reports that such a move was forthcoming. “This really is a Band-Aid where a tourniquet would be more appropriate.”

He emphasized that the quantity of diesel released would not be enough to supplant the barrels that have been lost particularly in the Russia-Ukraine war as Ukraine targets Russian oil refineries.