Trucking Groups Pan Trump's 24-Cent Diesel Tax Order as $6 Fuel Squeezes Carriers
Updated
Updated · POLITICO · Oct 6
Trucking Groups Pan Trump's 24-Cent Diesel Tax Order as $6 Fuel Squeezes Carriers
1 articles · Updated · POLITICO · Oct 6
Summary
$6 diesel prices left trucking groups dismissing Trump's executive order as too weak, saying the 24-cent-per-gallon federal tax deferral offers little practical relief.
ClearView Energy said the plan depends on retailers selling dyed diesel for highway use without collecting taxes first, a step many may avoid until Treasury clarifies how deferred taxes would later be handled.
GasBuddy's Patrick De Haan said most trucking fleets are unlikely to use the fuel anyway because most states still restrict dyed diesel, creating a multistate compliance risk that outweighs the savings.
For truckers, the pressure is immediate: OOIDA said every $1-per-gallon fuel increase adds about $400 a week for members, raising fears that prolonged high prices could force drivers out of business.
Will the temporary tax deferral on dyed diesel ultimately cost truckers more in state fines and accounting headaches than it saves?
Can a federal tax waiver actually lower freight costs when the underlying global refinery shortages and supply chain disruptions remain completely unresolved?