From Seattletimes · · 1m 10s
Red Diesel Move Confuses Truck Stops
Trump's red diesel order sparks fuel price confusion for truckers.
In brief
Trump's red diesel order sparks fuel price confusion for truckers. Trump's executive order allowing tax-free red diesel for trucks won't lower prices significantly as truck stops face uncertainty over tax waivers and fuel availability. Originally reported by Seattletimes.
Trump's red diesel order
President Donald Trump's executive order allows tax-free off-road diesel for highway vehicles.
Red diesel tax confusion
Red diesel is dyed red to distinguish from taxed clear diesel at 24.4 cents per gallon.
Price impact limited
Analysts say the move won't significantly lower fuel prices as red diesel accounts for one-third of U.S. consumption.
Tax waiver uncertainty
Fuel distributors unsure if tax obligations will be waived or postponed for red diesel use.
Truck stops lack red diesel
Most truck stops don't stock red diesel and face unclear acquisition costs.
Industry warnings
Truck stop groups warn tax burden may not be waived despite potential savings.
State policies complicate
State laws bar off-road diesel on highways, requiring potential waivers from governors.
Limited price impact
Experts say the move won't lower prices significantly as presidents don't control fuel prices.
“The impact is probably going to be limited. Every three years we go through the same exercise and come to the conclusion that presidents don’t control fuel prices.”
The one thing
Trump's executive order allowing tax-free red diesel for trucks won't lower prices significantly as truck stops face uncertainty over tax waivers and fuel availability.
