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By Chris Williams
Fox2
The Brief
*The White House is considering expanding sales of red-dyed diesel as fuel prices reach record levels.
*Red-dyed diesel is tax-exempt and typically used in off-road vehicles and equipment for farming and construction.
*Analysts say broader access to the fuel would provide limited relief and would not increase the overall diesel supply.
The White House is weighing regulatory changes that would broaden the sale of red-dyed diesel, a tax-exempt fuel commonly used in agricultural equipment, as prices climb because of supply disruptions tied to the U.S. conflict with Iran, Ukrainian attacks on Russian refineries and declining global inventories.
Analysts say the proposal would do little to address the shrinking supply that has pushed diesel prices to record levels. Here is a look at the problems affecting the diesel market and the potential impact of expanding red-dyed diesel sales.
What the White House is proposing
Dig deeper:
U.S. diesel prices reached a record $6.53 per gallon last week, according to Energy Information Administration data. The increase was fueled by reduced supplies from the Middle East and refining disruptions, including those linked to Ukraine’s attacks on Russian energy facilities.
The price surge has prompted the White House to consider expanding access to red-dyed diesel as President Donald Trump and his administration face pressure to reduce fuel costs ahead of November’s midterm elections.
The administration has also considered a blanket ban on diesel exports by refiners and urged the European Union to release emergency diesel reserves to help lower prices.
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