U.S. diesel prices are nearing the record high of $6.50, with the White House weighing a tax holiday and easing "red diesel" regulations, while an export ban remains under evaluation.
According to Bloomberg, as cited by Wallstreetcn, U.S. retail diesel prices are currently stable at around $6.5 per gallon, near historical record levels. The Donald Trump administration is weighing several intervention measures to curb price increases, including suspending the federal fuel tax, easing "red diesel" regulations, and evaluating a diesel export ban. Vice President Vance has urged action, and Energy Secretary Wright is negotiating with refineries to seek "voluntary reductions" in exports. Governors of Louisiana, Alabama, and Nebraska have already taken action, suspending penalties for off-road diesel use or offering tax refunds. However, federal-level policy decisions are not yet imminent, with internal debates ongoing. The tax suspension plan faces resistance due to the congressional recess, biofuel exemptions have been rejected, but the export ban option remains on the table, with some refineries already including protective clauses in their contracts to address potential risks.
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