Truckers could begin seeing relief from high diesel prices as soon as Saturday, Chris Wright said, after President Donald Trump signed an executive order aimed at temporarily expanding highway access to red-dyed diesel and providing relief from certain federal diesel-tax penalties and payments.
U.S. Energy Secretary Chris Wright joined FOX Business’ Stuart Varney on “Varney & Co.” to discuss the administration’s push to bring down diesel prices as tight global supplies continue to squeeze drivers and businesses.
Wright said truckers could begin seeing relief by Saturday, five days after Trump signed the order.
“The order was signed yesterday, and it’s five days for Treasury and the Department of War to find the specific authorizations.”
Trump’s order directs the Treasury Department to determine within five days whether it can defer certain federal diesel excise-tax payments. It also directs the IRS to provide penalty relief for dyed diesel sold for highway use or used on highways through Dec. 31, while federal agencies work with states and industry to expand access.
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Wright pointed to disruptions abroad as a key source of the pressure, citing Russia, China and reduced flows of refined products from the Middle East.
“We’re in a crisis right now with a shortage of diesel because of a conflict between Russia and Ukraine, China deciding not to export diesel anymore, and we still have reduced flows of refined products out of the Middle East, although they’re on their way up,” Wright said.
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Despite the tight market, Wright said he believes the worst of the price spike may have already passed.
“I think diesel prices peaked a couple weeks ago. They’re down 20, 25 cents already. I suspect we see a gradual decrease in diesel prices in the coming weeks and months ahead,” Wright said.
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