States Cut Fuel Taxes and Blend Rules as Trump Forecasts Post-War Price Drop
California and Georgia have suspended fuel taxes and summer-blend gasoline rules to ease soaring gas and diesel prices, while President Trump says prices will fall after the Iran conflict and the November midterms.
Drivers are confronting record-high pump prices, with AAA reporting regular gasoline at $4.48 per gallon and diesel at $6.45. In response, California Governor Gavin Newsom halted the seasonal summer-blend gasoline requirement, allowing cheaper winter-blend fuel, while Georgia Governor Brian Kemp declared a state of emergency and suspended the 33.3-cent gasoline and 37.3-cent diesel taxes for 30 days, also easing commercial-vehicle weight limits.
Massachusetts Governor Maura Healey intends to introduce a two-month gas-tax suspension, and states such as Texas, Alabama, Louisiana, Nebraska, South Dakota, Illinois, Indiana, Kentucky and Utah have relaxed diesel or hauling rules. President Donald Trump claimed that the conclusion of the Iran war and the November midterm elections will cause fuel prices to tumble, and his administration is considering a temporary ban on U.S. diesel exports, a move experts say could disrupt refining economics and raise long-term costs. The combined state measures aim to provide immediate relief to families, farmers and truckers facing elevated transportation expenses.
Why it matters
Rising fuel costs strain households and businesses, prompting state relief actions and a federal export debate.
How this story developed
- Sep 2 Diesel hits $5.68 per gallon, highest since 2022, as Trump urges price cuts
- Sep 18 The Trump administration finalized a partnership to develop 17 oil fields in Venezuela.
- Sep 19 Diesel prices reached $5.68 per gallon, the highest figure since 2022.
- Sep 22 Oil prices fell and AI data demand boosted semiconductor stocks, reversing earlier concerns about oil‑driven market pressure.
- Sep 22 Trump told reporters he wants to stop sending diesel abroad, citing the surge in diesel costs driven by conflicts in Iran and Ukraine. Treasury Secretary Scott Bessent said the administration is reviewing whether a full or partial ban is feasible. Republican Senate hopefuls, including Ashley Hinson, have urged the government to adopt the ban to ease price pressures on Americans.
- Sep 23 Rural GOP lawmakers have publicly demanded action on diesel exports ahead of the November election.
- Sep 24 President Trump announced support for a diesel export ban.
- Sep 24 Gas storage levels are now reported at about 69% of capacity, below the usual seasonal target.
- Sep 25 Refinery output shifts and refinery strikes have created a measurable shortfall in bunker‑fuel supply for the third quarter.
- Sep 26 The European Union has asked the administration to keep U.S. diesel exports flowing amid the price surge.
- Sep 26 President Donald Trump announced new fuel-economy rules that scrap the electric-vehicle mandate introduced under Joe Biden.
- Sep 27 The yen rose about 0.8% to 157.65 per dollar after Finance Minister Satsuki Katayama highlighted possible coordinated intervention.
- Sep 27 The Saudi pipeline across the Arabian Peninsula was closed after an attack in Iraq, adding to the blockage of the Strait of Hormuz.
- Sep 28 The 2031 fuel‑economy target was lowered to roughly 34.9 mpg.
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