US diesel prices rose nearly 10 cents a gallon in the latest week to an average of $6.28, reversing two weeks of declines and remaining near record highs, according to the Energy Information Administration, Reuters reported on October 23. Diesel has become a central issue ahead of the November midterm elections, and government data last week showed its rise was partly behind hefty increases in delivery costs, early-stage food production costs and even toy prices.
Source: Reuters via WDSM
President Donald Trump's administration has offered billions of dollars to farmers, relaxed rules for truckers, eased sanctions on Russian fuel and pressured European allies to release emergency stocks, Reuters reported. Trump signed an executive order onstage in Nebraska allowing red-dyed diesel to be used in highway vehicles and announced $8 billion in new farm aid during a rally in Kansas on Monday — $8 billion is about 800 crore dollars. Government payments to farmers were already expected to top $47 billion this year; the new programme would push the total to a record $55.4 billion (yaani about 5,540 crore dollars), above the previous high of $45 billion in 2020.
One of the most direct measures has struggled to gain traction, Reuters reported. The IRS has not eliminated the federal diesel tax; it has temporarily waived related reporting requirements and penalties through year-end, leaving uncertainty for truck stops and fuel sellers. David Fialkov, top lobbyist at NATSO, the trade group for the largest US truck stop operators, said the guidance remains 'murky' and added: 'I really don't see any of these dyed diesel announcements making a meaningful dent in diesel prices.'
The new farm aid will arrive after the November 3 election and likely not reach farmers until the end of the year, USDA official Richard Fordyce told Reuters on Friday. National Farmers Union President Rob Larew called it 'the second round of emergency aid this year' and said one-time payments cannot provide the stability farmers need. The White House attributed high diesel prices to 'pre-existing issues,' including years of refinery closures and damage from Russia's war in Ukraine. White House spokeswoman Taylor Rogers said: 'The President wants diesel prices to fall, which is why he has taken historic actions to save American farmers, truckers, and workers every hard-earned penny.' Reuters also reported an October Reuters/Ipsos poll in which nearly 80% of Americans blamed Trump for higher costs — that is the poll's finding, reported as such.
For truckers, the pressure is now the industry's top worry. The American Transportation Research Institute's 22nd annual Top Industry Issues report, released at the ATA Management Conference in Charlotte, North Carolina, ranked fuel prices No. 1 for only the fourth time in 22 years, based on nearly 3,100 stakeholders surveyed. Energy Department figures released October 19 put the national average at $6.276 a gallon and California at $8.242 a gallon, up about 15 cents on the week in California.
Source: The Driver Gear (ATRI report)