AUSTIN, Texas — President Trump signed an emergency order, aiming to bring diesel tax relief across the country, as fuel prices shift across Texas.
CBS Austin is tracking the latest changes following the president’s executive action.
The order, signed Thursday night in Nebraska, is designed to ease diesel costs for truckers, farmers and businesses that depend on diesel to operate. The White House said the move allows anyone to use red-dyed diesel, which is typically reserved for off-road equipment like farm machinery and taxed differently, on public roads.
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President Trump addressed the situation Wednesday, saying, “gasoline prices are going down very rapidly. when the war ends, they’ll drop like a rock and the war is going to end very soon,” during a gaggle. Explaining the new directive, Trump said, “I’m going to sign a historic executive order to officially waive the off-road requirement and allow anyone to purchase tax-free red-dyed diesel for any reason.”
Diesel prices have dipped in the past week. According to AAA, the statewide Texas average is now $5.74 a gallon, about 10 cents lower than last week’s price. In the Austin area, diesel is averaging $5.69 a gallon, a drop of about 11 cents.
Regular gasoline prices, while slightly lower nationwide compared to the previous week, remain high. For drivers filling up with regular gas, AAA reports the Texas average at $3.90 a gallon, with Austin at $3.86. That is about five cents higher than last week.
Recent figures from the White House show the federal diesel tax stands at 24.4 cents a gallon, roughly $61 for a truck’s 250-gallon fill-up. Pending guidance is expected from the Treasury Department and IRS to clarify which drivers or businesses will qualify for the new tax relief and when it will take effect.
Data from GasBuddy highlights some of the lowest current fuel prices in the Austin area:
Buc-ee’s in San Marcos: $3.39 a gallonCircle K near I-35 and U.S. 290: $3.53 a gallonWalmart near I-35 and Kyle Parkway: $3.55 a gallon
National concern over the economy remains high, as nearly three-quarters of adults in the United States described the nation’s financial state as very or somewhat poor in an AP poll conducted late last month.
Texas had already taken a similar step before the president’s order.
Gov. Greg Abbott issued a statewide disaster proclamation Sept. 28 allowing truckers and farmers to use red-dyed diesel on Texas roads. The proclamation also allows heavier fuel, crop and timber loads to move as the state works to expand diesel supply and ease costs.
CBS Austin will continue monitoring developments as federal agencies detail how the diesel tax break will roll out in Central Texas.