Trump’s Latest Diesel Fuel “Deal” Already Reeks Of Failure (And Corruption, Of Course)
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In his zeal to somehow push the cost of diesel down ahead of the 2026 mid-term elections, US President Donald Trump has turned to the nation’s chief Cold War enemy — Russia — for a helping hand. Sure, when all else fails, trust Russian President Vladimir President to come through for his good friend, Donald Trump. As for any benefit to the farmers, truckers, and others who actually care about the cost of diesel fuel, the joke’s on them…
The Red Diesel Deal That Nobody Took
To be clear, CleanTechnica is not particularly keen on diesel fuel, except perhaps for biodiesel. However, the cost of diesel impacts everything else in the US. Electric trucks, generators, and off-road equipment are beginning to cut into the picture, but for the here and now, diesel rules the road, and diesel is more expensive this year because Trump decided to bomb Iran in February.
Last month, Trump floated the idea of banning diesel exports for 90 days, an idea that was promptly shot down by his own advisors because it would push price up even farther. Still, something had to be done. On October 5, the US Energy Information Administration reported that average prices (all taxes included) for diesel fuel are up more than $2.00 per gallon from last year, with most regions of the US currently in the range of $6.00 per gallon and up.
Coincidentally or not, on October 5 Trump ordered a tax wavier enabling truck drivers to pump red diesel into their tanks. Red diesel is simply regular diesel fuel, dyed red. It is exempt from some taxes when used in agriculture and other off-road applications. The red color enables law enforcement to easily spot tax-evading truckers who illegally use red diesel. Therein lies the problem. Once the tax waiver expires on December 31, truckers are on the hook for any red diesel left over in their tanks.
“Red dye doesn’t simply vanish when you pump clear diesel on New Year’s Day. The dye is highly concentrated. It coats fuel tanks, saturates filters, and lingers in lines,” CleanTechnica’s Jennifer Sensiba pointed out last week.
“The standard federal penalty for unauthorized red diesel is $1,000 or $10 per gallon, whichever is greater, with states often stacking their own penalties on top,” Sensiba advised.
Sure enough, various newsrooms around the country have been reporting that truckers are wary of the tax holiday. The news organization LandLine Media notes that the Owner-Operator Independent Drivers Association and the Nevada Trucking Association are among those giving it the stinkeye.
“The details are not settled and our advice is simple: cool your jets. Dyed diesel is not extra supply. It comes from the same pool as clear diesel. In Nevada, it is not sold at retail truck stops or public stations,” NTA warned its members.
Fuel marketers have also raised red flags, so to speak, including the Society of Independent Gasoline Marketers of America and the National Association of Truck Stop Owners. “We do not expect most reputable diesel retailers and fuel marketers to do this,” the two organizations jointly advised.
Another Diesel Deal Also Goes Up In Flames
Having not accomplished anything at all, Trump turned to the Russians for help. Shortly after spending 90 minutes on the phone with Vladimir Putin on October 9, Trump abruptly announced that Russia will supply the US with a copious amount of diesel fuel from its own stockpiles, thereby bringing prices down.
What could possibly go wrong? Well, everything. As capably underscored by legal analyst Marcy Wheeler, nowhere does the word “diesel” appear in a statement issued by Putin following the call. Nevertheless, Trump put his own spin on the conversation.
“I have just concluded a highly successful discussion with President Vladimir Putin, of Russia, wherein it was agreed that Russia will immediately supply over 300,000 Tons of Diesel Fuel to the American and Global Marketplace, another 500,000 Tons during the month of November, and 1,000,000 Tons immediately thereafter,” Trump posted on his personal social media platform on October 9.
That’s just for starters. Trump also claimed that Russia will deliver another 3 million tons of diesel fuel “within a short period of time,” although that is contingent upon “the condition of their Diesel Refineries.”
“Diesel Prices for Americans and, indeed, the World, will be COMING DOWN, IN RECORD NUMBERS, AND FAST! Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority,” the President added for good measure.
Diesel Is The Coverup, Corruption Is The Crime
As for why Trump stated his figures in tons and not gallons, who knows? Tonnage is the go-to when shiploads of product are involved, but it’s the price per gallon that drivers see at the pump.
Regardless of the unit of measurement, the amount of diesel involved in the deal — if there is any at all — is far too little, too late to put any significant downward pressure on fuel prices in the US. Last year, the domestic transportation sector alone consumed an average of 123 million gallons of petroleum-derived diesel per day.
Diesel or no diesel, Marcy Wheeler has the receipts. In her analysis, the “Greatest Priority” for President Trump is the backroom deals he struck with Vladimir Putin to pump up his own personal wealth, along with that of his enablers and family members, leaving the US to go down in flames alongside its longstanding allies in Europe. “Vladimir Putin seems to have finally completed the complete recruitment of Trump that Russia has been pursuing for decades,” Wheeler concludes (here’s that link again).
Electric Trucks Are Coming For Your Diesel Fuel
As of this writing, diesel is averaging $6.282 per gallon, up 71.2% since February, according to the handy Iran War Energy Cost Tracker developed by The Watson School of International and Public Affairs at Brown University.
And, there is no end in sight. In a lame attempt to deflect attention from the Iran debacle, Trump is now blaming the high cost of diesel in the US on Ukraine (I know, right?!?). That argument is unraveling in real time as a US “victory” in Iran drifts farther away. In the latest development, the US Naval Institute is among those reporting that shippers have adopted a sort of “shuttle” relay to avoid being attacked in the Strait of Hormuz. However, the shuttle system is expensive, further putting upwards pressure on fuel prices.
In addition, the conflict in Iran continues to explode across the Middle East, impacting energy facilities beyond Iran. In the latest development, Houthis — a rebel group in Yemen supported by Iran — rained missiles down upon the international airport in Riyadh, Saudi Arabia. So far the death toll has reached 12, with more than 300 wounded.
“The Houthis have repeatedly attacked Saudi airports, oil facilities and tankers after a truce in their long-running war with Yemen’s Riyadh-backed government unravelled in July.” The Guardian reported on October 10.
With no end in sight, it’s little wonder that interest in electric trucks has ticked up in the US. Though overall activity has been sluggish compared to other countries, signs of revival have been emerging in the area of box trucks, delivery trucks, and other vehicles below the heavy duty Class 8 field. FedEx, for example, just ordered another 2,000 electric trucks for its fleet from the US startup Harbinger. Another startup, Grounded EVs, recently nailed down enough seed funding to expand its factory operations.
Another startup to watch is Einride, a Swedish firm that has been introducing its autonomous electric trucks to the US market. And then there’s Tesla, of course.
If you know of some others in the startup space, share in the discussion thread.
Image: The cost of diesel fuel in the US remains stubbornly high, even as US President Donald Trump experiments with various schemes to push prices down ahead of the mid-term elections (screenshot courtesy of US Department of Energy).
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