President Trump is allowing cheaper, dyed diesel to be used on U.S. highways to blunt a historic fuel-cost spike, after the national average diesel price topped $6 a gallon in September for the first time ever.
Key facts
- The U.S. national average diesel price topped $6 a gallon in September.
- It was the first time diesel prices had ever reached that level.
- The spike was driven by fuel supply disruptions that raised transportation costs.
- The administration is allowing cheaper, dyed diesel on highways in response.
- The move comes ahead of the midterm elections.
The U.S. national average price of diesel climbed above $6 a gallon in September for the first time ever, according to CNBC, marking a historic high for a fuel that underpins much of the country’s freight and transportation system.
CNBC reported that the record was driven by fuel supply disruptions that pushed up transportation costs across the country. Diesel is a critical input for trucking, shipping and other goods movement, meaning higher prices at the pump can ripple through the broader economy.
In response to the spike, President Trump is allowing cheaper, dyed diesel to be used on U.S. highways, a step intended to blunt the impact of the surging costs on drivers and businesses.
Dyed diesel is typically reserved for off-road and non-taxed uses, so permitting it on highways represents a departure from standard practice aimed at expanding the supply of lower-cost fuel available to motorists.
The timing of the move places it ahead of the midterm elections, when fuel prices and the cost of living are often closely watched by voters.
The available reporting does not detail the duration of the policy, the specific states affected, or the precise mechanism by which the change will be implemented.
Why it matters
Diesel prices directly affect the cost of moving goods, which can feed into prices consumers pay for everyday items. With the national average hitting a record above $6 a gallon just before the midterms, the government's response carries both economic and political weight.
Frequently asked questions
How high did diesel prices get?
The U.S. national average price of diesel topped $6 a gallon in September, the first time it had ever reached that level, according to CNBC.
What is the government doing about it?
According to CNBC, President Trump is allowing cheaper, dyed diesel to be used on U.S. highways to blunt the historic fuel-cost spike.
Why did diesel prices spike?
CNBC reported that fuel supply disruptions pushed up transportation costs in the country, driving the record price.