Trump defers diesel tax for truckers as fuel costs bite weeks before US midterms

Key Points:

• President Donald Trump signed an executive order allowing deferred tax payments on red-dyed diesel fuel, typically reserved for off-road machinery, to help truckers, farmers, and other diesel users amid soaring fuel prices ahead of the midterm elections.
• The order postpones federal diesel tax payments from October 5 to December 31 without interest or penalties but does not eliminate the tax, leaving open the possibility that the deferred amounts will still be owed after the relief period.
• Diesel prices in the US have surged to an average of $6.32 per gallon, driven by global supply disruptions from the Russia-Ukraine conflict and reduced refining capacity, with the White House also criticizing Democrat-led states for refinery shutdowns linked to green energy policies.
• The measure aims to ease financial pressure on diesel-dependent sectors such as agriculture during critical periods like harvest, with the American Farm Bureau Federation welcoming the relief as beneficial for farmers managing large fleets.
• Following the announcement, oil prices eased slightly as Gulf oil exports (excluding Iran) recovered, with Brent crude falling below $100 a barrel and West Texas Intermediate dropping under $88.