CNBC: Trump's Diesel Executive Order Has Limited Effect, Unable to Effectively Address Soaring Fuel Prices
According to CNBC, former US President Donald Trump signed an executive order allowing truck drivers to use off-road diesel (red-dyed diesel) on highways without federal penalties, in response to soaring diesel prices. However, analysis suggests the measure will have limited effect, as the executive order only postpones the payment of federal excise tax (24.4 cents per gallon) until the end of the year and does not exempt the average state excise tax of 35.5 cents per gallon. Experts point out that the executive order will not have a "profound impact" on fuel prices, as refinery bottlenecks are the main problem. The current average retail price of diesel in the US is $6.30 per gallon. Previously, Donald Trump had considered a ban on diesel exports but ultimately abandoned the idea.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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