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US diesel prices remain high despite Trump's moves to boost supplies
Reuters • • general
Key Points:
- US diesel prices have surged 70% since the US-Israeli conflict with Iran began, reaching an average of $6.28 per gallon amid global fuel supply disruptions caused by wars in Iran and Ukraine.
- President Trump has taken steps to ease diesel shortages, including pressuring allies to release emergency reserves and allowing tax-exempt red-dyed diesel on public roads, but these measures have had limited impact.
- The red-dyed diesel initiative faces logistical challenges and limited industry adoption due to unclear tax liabilities and the risk of fines, with savings considered minimal at current high prices.
- High fuel costs are increasing pressure on Trump and Republicans ahead of the midterm elections, especially among key voter groups like farmers, truckers, and rural communities.
- Experts emphasize that only a durable resolution to conflicts in the Arabian Gulf and Ukraine can significantly lower oil prices, while current policy options provide only short-term relief.
