# U.S. Diesel Prices Near $6.33 As Trump Weighs Tax Relief And Fuel Measures

- URL: https://stocks.freetheai.org/news/u-s-diesel-prices-near-6-33-as-trump-weighs-tax-relief-and-fuel-measures-f074aa
- Published: 2026-10-16T09:39:43Z
- Category: energy; sentiment: bullish; impact: high
- Symbols: [AMEX:USO](https://stocks.freetheai.org/symbols/AMEX-USO), [AMEX:UCO](https://stocks.freetheai.org/symbols/AMEX-UCO)
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U.S. diesel prices averaged $6.33 per gallon nationally on Friday, with prices in California reaching $8.49 per gallon. In response to elevated costs at the pump, President Donald Trump stated that he may support suspending the federal diesel tax, which currently stands at 24.3 cents per gallon. Energy markets tracked the developments, with the United States Oil Fund LP (AMEX:USO) rising 2.44% to $157.30 and ProShares Ultra Bloomberg Crude Oil (AMEX:UCO) gaining 0.59% to $60.88.

Rising fuel prices have increased pressure on commercial transportation and consumers, prompting executive actions to expand supply. Earlier this month, the administration authorized temporary highway use of red-dyed diesel, a fuel normally restricted to off-road construction and agricultural equipment. Additionally, an arrangement was reached to import Russian diesel into U.S. and global markets, starting at over 300,000 tons and increasing to 1 million tons in subsequent phases, though the import plan has drawn bipartisan pushback from political leaders.

Investors and drivers should watch whether federal tax deferrals or formal legislation to suspend the excise tax move forward before the end of the year. Market participants will also monitor global trade flows, domestic inventory reports, and conflict developments in the Middle East to assess whether crude and refined product prices can stabilize.

## Key points

- National average diesel prices reached $6.33 per gallon on Friday, while California prices rose to $8.49 per gallon.
- President Donald Trump signaled potential support for suspending the 24.3 cents per gallon federal diesel tax to lower pump prices.
- The administration temporarily permitted off-road red-dyed diesel for highway use and deferred tax obligations through year-end.
- A planned arrangement allowing imports of Russian diesel to global markets has faced bipartisan political pushback.

## Questions and answers

### What is the current average price of diesel in the United States?

The national average price of diesel reached $6.33 per gallon on Friday, with California averaging $8.49 per gallon.

### How much is the federal diesel tax in the U.S.?

The federal excise tax on diesel fuel is 24.3 cents per gallon.

### What actions has the federal government taken to lower diesel prices?

The administration temporarily authorized off-road red-dyed diesel for highway use, deferred tax obligations through year-end, and signaled support for suspending federal diesel taxes.