$6 Diesel Is Here. The Government's Fix? A Different Color.

Diesel crossed $6 a gallon. The White House's answer was to wave a magic wand and let truckers use red-dyed diesel on the highway. Truckers said: thanks, but no thanks.

As of mid-September, the national average for on-highway diesel hit $6.28 per gallon. That's up 32 cents in a single week and $2.54 higher than the same week a year ago, according to the U.S. Energy Information Administration. Midwest diesel was sitting at $6.25. Brent crude climbed to $130.80 a barrel, a three-month high. The math is brutal.

President Trump signed an executive order Monday expanding highway use of red-dyed diesel. That's the tax-exempt fuel normally reserved for off-road equipment like farm machinery. He also directed the Treasury Department to consider deferring the federal excise tax on highway diesel through December 31. The White House said a 250-gallon fill-up could save drivers roughly $60 on the federal side, or more than $100 if states kick in corresponding relief.

Sounds nice. Here's the problem.

The American Trucking Associations pushed back immediately. "This does not create additional fuel or address the underlying supply crunch that is driving prices higher," ATA executive Henry Hanscom said in a statement to Politico. Their position: a tax break doesn't build more barrels.

OOIDA CEO Todd Spencer was even more direct. Every $1-per-gallon increase costs members roughly $400 a week, Spencer noted, and "allowing the wider use of red-dyed diesel will provide minimal relief." At sustained $6-plus prices, some owner-operators won't survive long enough to see whatever comes next. (Land Line)

The compliance picture gets messier. GasBuddy analyst Patrick De Haan pointed out the federal order doesn't override state restrictions on dyed diesel. A driver running interstate could legally use the stuff in one state and face penalties the moment he crosses into the next. Compliance departments at fleets are reportedly unimpressed with a 24-cent saving that comes with a potential fine attached.

The deeper issue: analysts and the EIA both expect diesel to stay above $6 through October. Refining and distribution disruptions tied to Middle East conflicts have hammered inventories. A power outage at the ExxonMobil refinery in Joliet, Illinois, on September 13 knocked out roughly 11 million gallons of daily gasoline and diesel production for four hours. It was a reminder of how fragile the supply chain is right now. Reuters reported that a global diesel shortage is likely to last into 2027 as storage tanks drain. (Reuters)

Don Schaefer, president of the Mid-West Truckers Association, put it plainly: "With the inventories being so low and demand continuing to go up, that means your price is going to continue to go up until we get some sort of resolution." (FarmWeek via Times Tribune)

If you're an owner-operator buying at the pump, you're absorbing every penny of this in real time.

So what can drivers actually do? Lock in fuel contracts where possible. Audit your routes for fuel stop efficiency. And keep a close eye on the EIA's weekly diesel report. Right now, the price at the pump is moving faster than any executive order.