Trump's diesel price relief efforts grow costlier as election nears
USO•Trump’s administration has offered $8 billion in new farm aid and taken other steps to address diesel costs, but US diesel prices rose nearly 10 cents in the latest week to $6.28 a gallon. The farm aid would bring government payments to farmers to a record $55.4 billion this year.
1. Prices and political pressure
With the November midterm elections approaching, Trump has pursued measures including farm aid, relaxed rules for truckers and eased sanctions on Russian fuel. US diesel prices rose nearly 10 cents a gallon in the latest week to an average of $6.28, near record highs, and the fuel’s rising cost has contributed to increases in delivery and production costs.
2. Farm aid and truck rules
Trump announced $8 billion in new farm aid and signed an order allowing red-dyed diesel to be used in highway vehicles. The IRS has temporarily waived certain reporting and record-keeping requirements, but has not eliminated the federal diesel tax; a truck-stop trade group said the guidance remains unclear and risky. The farm aid would push government payments to farmers to $55.4 billion this year, above the previous high of $45 billion in 2020.
3. Russian fuel trade-offs
Trump’s easing of sanctions on Russian diesel has drawn bipartisan criticism and questions about whether it will lower US fuel prices. Analysts cited the Iran conflict’s disruption of global oil flows and refined-fuel supplies as a bigger driver of the diesel price spike than Ukrainian attacks on Russian refineries. The farm aid is expected to arrive after the November 3 election, with payments likely reaching farmers by year-end.
