Trump Plans Wider Use of Tax-Exempt Diesel to Lower Costs Ahead of Congressional Elections

Trump plans to expand the use of tax-exempt diesel in a bid to reduce fuel costs ahead of congressional elections.

The proposed move comes amid a global crisis driven by disruptions to refining and shipping. Those disruptions have put fuel supplies and costs under pressure.

Widening access to tax-exempt diesel would target the tax component of its price. The summary of the plan does not specify which users would become eligible or when the change would take effect.

Meanwhile, the Group of Seven and its partners are moving toward releasing 100 million barrels from emergency reserves as part of the response to the crisis.

The measures would address different aspects of the strain on energy markets: tax relief would seek to lower diesel costs, while the planned reserve release would add oil supplies. Their impact would depend in part on the continuing disruption to refining and shipping.