While gasoline prices in the U.S. are down again Tuesday, diesel users continue to see prices well above the $6 mark. The national average for a gallon of diesel as of Oct. 20 is $6.31 per gallon, which is the same as it was Monday and four cents more than it was a week ago, according to AAA.
Diesel prices have skyrocketed in recent months, topping out at a record high of $6.52 per gallon on Sept. 22. In the month since, that price is down about 21 cents, however diesel is $2.70 higher per gallon than it was a year ago.
Diesel prices remain high despite efforts from state and federal leaders to cushion the costs for drivers. On Oct. 5, President Donald Trump signed an executive order allowing for red-dyed diesel to be used for highway vehicles and deferred the federal excise tax on diesel through the end of the year.
Dyed diesel is typically used in off-road equipment like farm equipment, construction machinery, trucks and other off-road vehicles. It’s dyed so that law enforcement can tell if someone is using dyed diesel to avoid paying the 24.4-cent per gallon federal tax on diesel fuel, as dyed diesel is not taxed.
However, Trump’s executive order doesn’t supersede state tax laws and public road use for dyed diesel. That means that while it’s legal in one state to use dyed diesel on public roads under the executive order, it may be illegal in others, putting drivers at risk of being fined. Although some states have relaxed those laws, others haven’t.
Trump has requested that states relax the laws, but his order cannot force the states to do so.
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Some states have also removed their own taxes on gasoline and diesel in hopes of helping consumers at the pump. But the efforts don’t appear to be making much of an impact.
When Trump’s order was signed on Oct. 5, the national average for diesel was $6.199, according to the U.S. Energy Information Administration. As of Oct. 19, the agency reports the average is $6.276, which is slightly different than AAA’s reporting of $6.318.
The national average for regular unleaded as of Oct. 20 is $4.27, down nearly two cents from Monday. Gasoline prices are down seven cents from a week ago.
President Trump announced a new diesel deal with Putin on October 9 to the surprise of many U.S. allies. Experts argue the agreement could undercut Western economic pressure on Russia and solidarity efforts with Ukraine while doing little to lower fuel prices.
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