‘Lipstick on a pig’: Trump’s red-dyed diesel plan is more midterms appeal than gas price solution, experts say—and even truckers are calling his bluff
Source: Fortune ·
As the Iran war keeps diesel prices above $6 per gallon, analysts say the only way to lower costs is to ease geopolitical tensions.
From the source
Diesel fuel prices are hovering at record highs above $6 per gallon amid the ongoing Iran war, but both energy analysts and trucking industry groups say the Trump administration’s new strategy is less a viable solution—and more of an act of political posturing. President Donald Trump signed an executive order this week deferring taxes on the use of red-dyed diesel, a type of fuel typically only used by farmers and truckers. Because this type of fuel is exempt from highway fuel taxes, it is illegal to use on public roads. The red dye also allows a road inspector to detect whether a trucker is evading taxes by using the fuel on highways. The tax deferral, which would theoretically increase the supply of fuel truckers had access to by temporarily relieving the tax burden of 24.4 cents-per-gallon, is in place through the end of the year. Rather than rejoice at the prospect of more fuel with fewer strings attached, experts and stakeholders don’t see many advantages to the change. Instead,…