Trump Plans Wider Use of Tax-Exempt Diesel to Cut Costs Before Congressional Elections

Trump plans to expand the use of tax-exempt diesel in an effort to lower fuel costs ahead of congressional elections.

The proposed move comes amid a global fuel crisis driven by disruptions to refining and shipping, putting pressure on the supply of diesel and other fuels.

Widening access to tax-exempt diesel would target the tax component of fuel costs. The plan’s scope and implementation timetable were not specified.

Meanwhile, the Group of Seven and its partners are moving toward releasing 100 million barrels from emergency reserves as they seek to address the global disruption.

The two measures would tackle different aspects of the crisis: Trump’s proposal focuses on lowering diesel costs through tax treatment, while the planned reserve release would add oil to the market.