Trump’s Midterm-Timed Diesel Order Hits Roadblock

President Donald Trump wants to give truckers a break at the diesel pump amid soaring wartime prices — but fuel companies appear to be afraid they will be left footing the bill.

Fuel distributors and truck stops are holding off on selling red-dyed diesel to highway drivers despite Trump’s executive order temporarily permitting its use, according to Bloomberg. The hesitation comes as businesses await clarity on whether the federal government will permanently forgive the fuel tax or demand payment later.

“We can’t do anything,” Kate Childs, president of Connecticut-based fuel wholesaler Tuxis Ohr’s Fuel, told the outlet. “We have had customers call already. We’ve said we’re waiting for clarity.”

“President Trump’s executive action will quickly cut diesel costs by authorizing highway use of tax-free dyed diesel and deferring the federal diesel excise tax through the end of the year,” White House Spokeswoman Taylor Rogers told the Daily Caller News Foundation. “This will put money directly back into the pockets of American truckers, farmers, and workers—providing savings of as much as $100 per fill.”

Trump signed the executive order Monday, temporarily opening highway use of red-dyed diesel, a fuel normally reserved for tractors, construction equipment and other off-road machinery. The order directs the Treasury Department to defer the federal 24.4-cent-per-gallon diesel tax through Dec. 31 without interest or penalties while exploring ways to eliminate the obligation altogether.

The move comes roughly one month before the November midterm elections as diesel prices remain elevated amid global supply disruptions sparked by the Iran war. Trump has argued that the measure could save truckers more than $100 per fill-up in states that also provide tax relief.

However, the order postpones the federal tax rather than eliminating it, leaving businesses uncertain about their future obligations.

The National Association of Truck Stop Owners (NATSO) and Energy Marketers of America have cautioned members against assuming the federal government will forgive the tax, Bloomberg reported.

“Although it won’t be collected from the customer, the fuel tax would still be an obligation of the retailer,” NATSO Vice President Tiffany Wlazlowski Neuman told Bloomberg.”Congress may or may not waive that obligation considering the current needs of the Highway Trust Fund. It’s a lot of risk to absorb that 24 cents per gallon.”