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CBS NEWSUpdate

Analysts say Trump's red-diesel order will barely lower prices and may bring a tax bill later

Political Guyentist · October 7, 20261 min read

CBS NEWS

Trump's order defers the 24.4-cent federal diesel tax only through the end of 2026, about 4% of today's $6.32 national average. State laws still bar red-dyed diesel on highways (GasBuddy's Patrick De Haan: "A presidential order can't override state tax law").

On Oct. 1, Ohio passed a gas-tax holiday as Iran-war prices climbed. Trump then signed an order letting any driver use tax-exempt red diesel, which skips the 24.4-cent federal road-fuel tax. He also directed the Transportation Department to work with states on waiving their own diesel taxes. Gas and diesel taxes are separate, and only Ohio, Georgia and Kentucky had suspended their diesel taxes.

Diesel prices (AAA)Now: $6.32 a gallon national average3 details
  • Now: $6.32 a gallon national average
  • Before the Iran war: $3.76 a gallon
  • Record: $6.53 a gallon, set in September

What we’re less sure of4 of 8 claims