Trump Tax Deferral on Road Use of Red Diesel Sends Futures Down 2.6%, but Supply Disruptions Persist
Summary
- President Donald Trump temporarily allowed a deferral through year-end of the federal excise tax on the road use of red diesel.
- The move sent New York Mercantile Exchange (NYMEX) diesel futures down 2.6% to $4.4295 a gallon.
- Ritterbusch and Associates said the measure may ease some of the diesel price burden, but it does not solve the underlying problem of supply disruptions in the Strait of Hormuz.
Forecast Trend Report by Period
U.S. diesel futures fell after President Donald Trump temporarily allowed a deferral through year-end of the federal excise tax on the road use of red diesel.
Walter Bloomberg reported on October 6 that Trump had temporarily permitted a deferral of the federal excise tax typically levied when red diesel is used on roads. The deferred tax could later be waived entirely.
Ritterbusch and Associates said the measure may ease some of the burden of high diesel prices, but it does not address the underlying problem of supply disruptions through the Strait of Hormuz.
NYMEX diesel futures fell 2.6% to $4.4295 a gallon.
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