Truck diesel prices appear to be in retreat after spiking to their highest levels in history during the spring. Owner-operators and fleets held their collective breath over worries fuel costs could have a catastrophic impact on the trucking industry. Recent per-gallon reductions and trucker-friendly states providing tax-holiday relief have the freight hauling industry issuing a cautious sigh of relief.
During the peak of the diesel cost hike, the Energy Information Administration (EIA) literally stopped posting weekly data. Once the price of gasoline and diesel dipped, the EIA issued a new metric that now involves “on-highway” diesel pricing. According to that non-traditional analysis, diesel rose from $2.681 per gallon in January 2021, when the Biden Administration implemented its new energy policy, to $5.754 in June 2022. Since June, the cost of diesel slid as consumer use declined and the global petroleum markets realigned following U.S. sanctions on the purchase of Russian oil.
Diesel costs have been a driving force behind the 40-year-high inflation, which appears to be slowing with the lower pass-along fuel expenses. Across the country, a handful of truck-friendly state legislatures and governors have been doing their part to minimize the pain of truckers and consumers.
Georgia Gov. Brian Kemp recently extended an executive order suspending the gasoline and diesel tax for the third time. The new order additional includes train locomotive fuel and runs through Sept. 12. The Georgia Republican blasted the White House for the high price of fuel. His Democrat opponent in the November election, Stacey Abrams, responded by saying the order should have run through the year’s end. The move eliminates Georgia’s tax on diesel of 32.6 cents per gallon and positions diesel just below $5 per gallon. Other states that have temporarily vacated their fee on truck diesel include the following.
- California: The Golden State reportedly reduced its diesel tax for one year.
- Florida: The Sunshine State plans a one-month fuel tax holiday in October.
- Illinois: The state’s governor froze fuel taxes, avoiding increases for the remainder of the year. Truckers can anticipate two fuel tax hikes in 2023.
- Maryland: The state opted for a one-month fuel tax holiday. Lawmakers recently pushed for a three-month measure.
- Missouri: Fuel taxes increased. But consumers can apply for refunds.
- New York: The Empire State enacted a diesel tax holiday that runs through the end of the year.
“Federal taxes include excises taxes of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel, and a Leaking Underground Storage Tank fee of 0.1 cents per gallon on both fuels,” according to the EIA. “On-highway diesel fuel prices have been higher than regular-grade gasoline prices, on a dollar-per-gallon basis, almost continuously since September 2004.”
Congress and the White House have declined to enact national gasoline or diesel tax holiday.
Sources:
https://www.newsweek.com/which-u-s-states-have-suspended-gas-taxes-full-list-1712027
https://www.cnet.com/personal-finance/federal-gas-tax-holiday-which-states-pausing-gas-tax/
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