While the nation continues to seerecord-high gas averages, U.S. President Donald Trump has announced a new diesel deal with Russia.
But will it impact the prices you pay every day?
What is Trump's diesel deal?
Trump announced a deal with Russia's Vladmir Putin last week which will supposedly result in over 300,000 tons of diesel fuel immediately to the global and American markets.
The deal is also expected to deliver an additional 500,000 tons in November and 1,000,000 afterward,according to a Truth Social post from the president.
The deal coincides with an Oct. 5 emergency tax reliefExecutive Order, supposed to give a diesel tax break to consumers from Oct. 5 through the end of the year.
The order allows "dyed diesel" — which is literally dyed red to show tax-exempt status
— to be used or sold for use on the highway during the aforementioned time period.
Typically, the tax exemption is reserved for things like farm, construction and other off-road vehicles. The order allows the tax-free diesel to be used at an expanded capacity with deferred taxation.
Diesel is taxed at 24.3 cents on the gallon, with an additional 0.1 cent fee for Lust Tax, totaling 24.4 cents in diesel taxation.
Will Trump's diesel deal actually save me money?
While the order is intended to temporarily give highway access to tax-free diesel, are those taxes enough to make a difference to the everyday consumer?
According to posts from petroleum analyst Patrick De Haan,the benefit may not be as simple as a tax exemption.
De Haan points out the differences in supply for the dyed diesel, which he says is usually purchased from a supplier or wholesaler rather than a local station for off-road use.
"The distribution of dyed diesel is not nearly the same as the distribution of traditional on-road diesel. ... there is a smaller distribution system, meaning that selling significantly more may impact negatively the availability," De Haan wrote.
The order, broken down by De Haan, also relies on states (who have their own diesel taxes) to suspend their law enforcement for highway dyed diesel.
Which states will save from Trump's diesel order?
How much you could save from diesel taxes depends on if your state is dropping its highway dyed-diesel enforcement and/or its state diesel taxes during the given time period.
A number of states have already imposed dyed-diesel waivers. You can check the specifics here:
Texas - Suspended state dyed-diesel restrictions and penalties under disaster proclamation;Sept. 28 - TBD.
Oklahoma - A 120 day pause in enforcement for farm vehicles;Implemented Sept. 28.
North Dakota - Allowance of dyed-diesel in licensed vehicles for agricultural operations;Sept. 29 - Nov. 30.
North Carolina - Highway use exemptions for agricultural season;Sept. 30 - Dec. 31.
Nebraska - Tax refunds for state agricultural use with eligible waiver; Sept. 24 - Dec. 23.
Missouri - Dyed-diesel restrictions lifted for registered highway use for agricultural purposes; Sept. 30 - Oct. 30.
Louisiana - Dyed-diesel restrictions lifted for certain vehicles with state excise payment; Sept. 23 - Oct. 26.
Indiana - Dyed-diesel restrictions lifted with certain tax exemptions for farmers and timber harvesters; Sept. 30 - Nov. 4.
Arkansas - Highway restrictions lifted for farmers and loggers; Sept. 30 - Oct. 30.
Alabama - Dyed-diesel enforcement paused for 120 days for agricultural and timber relief; Implemented Sept. 24.
Kaitlyn McCormick is a Philadelphia-based reporter writing all things cost of living related for USA TODAY.
This article originally appeared on USA TODAY: Which states will save the most from Trump’s diesel plan?
