WASHINGTON, D.C. — Skyrocketing diesel fuel costs are impacting farmers, truckers and businesses across the country as the fuel disruptions from the war with Iran continue.
The price of diesel fuel is up more than $2.50 since the beginning of the war with Iran. An executive order signed by the president on Monday aims to provide some relief for those who rely on diesel the most.
“Every aspect of our business is related directly to the fuel cost,” said Jacob Hayduk, the owner of Hayduk Enterprises, a second-generation drilling and blasting company in Pennsylvania.
Businesses like his, that depend on diesel for transporting and operating equipment, are feeling the squeeze the most.
“For diesel fuel prices, I mean, we’ve seen a 48% increase from quarter three of last year. So that’s a massive impact when you’re purchasing thousands of gallons of fuel a month,” Hayduk said.
And when diesel keeps businesses across the country moving, there’s no easy way to hit the brakes on rising costs.
“The diesel is so crucial to us operating as a business. We can try to shorten routes or be selective of where we purchase fuel. But in general, there’s really no avoiding it,” Hayduk said.
In the U.S., diesel prices have soared roughly 77% just this year, according to AAA. The current average is $6.30 per gallon, up from $3.76 before the Iran war.
Now, President Donald Trump is looking to give businesses, farmers and truckers some relief with an executive order he signed Monday. The order directs his administration to expand the use of cheaper, red-dyed diesel.
“And allow anyone to purchase tax-free red-dyed diesel for any reason,” President Trump said during a rally in Nebraska on Monday.
Red-dyed diesel is the same as regular diesel. However, it’s untaxed and dyed red to be distinguished for off-road use, including for farm equipment.
“Red dye is not subject to the federal excise tax on diesel, which is currently $0.24 a gallon,” said Chet Thompson, president and CEO of American Fuel and Petrochemical Manufacturers.
Thompson said allowing dyed diesel on the roads is not a silver bullet, but it will still help.
“It is something that will provide some relief to folks,” he said.
For businesses that depend on diesel, some relief is better than none.
“You’d be looking at somewhere around $50 to fill up on one of our heavy on-road tractor trailers,” said Hayduk. “It’s not going to be a massive impact, but anything helps.”
The president’s order does not remove tax obligations on diesel; they’re just deferred until next year.
Republican leaders on Capitol Hill welcome the president’s efforts to provide relief, especially to farmers preparing to transport the season’s harvest.
“Fuel is not optional in agriculture, especially as we enter harvest season and need to get crops to market. I am pleased to see President Trump addressing the challenges facing American farmers and working to ensure they have the tools necessary to remain productive and competitive,” said House Agriculture Committee Chairman Glenn “GT” Thompson, R-Pa.
