From Vox · Cameron Peters · · 1m 50s
Trump's diesel order probably won't work
Trump signed an executive order on red-dye diesel to lower prices ahead of midterm elections, but experts say it won't fix the underlying crisis.
In brief
Trump signed an executive order on red-dye diesel to lower prices ahead of midterm elections, but experts say it won't fix the underlying crisis. Trump signed an executive order on red-dye diesel on October fifth to lower prices before midterms, but it is unlikely to meaningfully reduce costs because it cannot address…
Quick answers
- What is red-dye diesel?
- Red-dye diesel is a kind of diesel usually reserved for farm and construction equipment and other off-road uses, marked with red dye to distinguish it from diesel sold for on-road vehicles. It is ordinarily tax-exempt.
- What is the key takeaway from Trump's diesel order probably won't work?
- Trump signed an executive order on red-dye diesel on October fifth to lower prices before midterms, but it is unlikely to meaningfully reduce costs because it cannot address the global diesel shortage caused by the Iran war.
Trump signs diesel order in Nebraska
On Monday evening, Trump signed an executive order intended to lower diesel prices by temporarily expanding access to red-dye diesel at a rally in Grand Island, Nebraska on October five, twenty twenty-six.
What is red-dye diesel?
Red-dye diesel is a kind of diesel usually reserved for farm and construction equipment and other off-road uses, marked with red dye to distinguish it from diesel sold for on-road vehicles. It is ordinarily tax-exempt.
What Trump's order actually does
Trump's order defers payment on, but does not suspend, the federal tax on red-dye diesel for on-road vehicles through the end of the year. It also directs his Cabinet to explore pathways to eliminate the obligation to pay the deferred taxes.
Diesel prices have surged
Diesel prices are way up because of the Iran war. The national average price per gallon is six dollars and thirty-two cents, compared to three dollars and sixty-eight cents one year ago.
Why diesel prices matter to everyone
Most people do not use diesel to fill up their tank, but semitrucks shipping food and other goods around the country rely on it. When diesel gets more expensive, nearly everything else does too, sooner or later.
Why Trump signed it in Nebraska
High diesel prices have hit hard in Nebraska and other agriculture-heavy states like Iowa and Kansas, jeopardizing Republican Senate seats in all three. Nebraska ordinarily looks comfortably Republican but now looks potentially in play for independent Senate candidate Dan Osborn.
The short version
Trump signed an executive order on red-dye diesel on October fifth to lower prices before midterms, but it is unlikely to meaningfully reduce costs because it cannot address the global diesel shortage caused by the Iran war.
