US President Donald Trump has hinted at a major announcement on diesel prices as fuel costs approach record highs. The expected move comes ahead of the November 3 congressional elections, when voters will decide which party controls Congress.
According to three industry sources, Trump is preparing a directive aimed at reducing diesel prices across the United States. The measure could be issued within days and would instruct federal agencies to explore ways to increase domestic fuel supplies.
Diesel plays a crucial role in the US economy, powering trucks, agricultural machinery, and home heating systems. Consequently, rising prices have increased pressure on businesses and consumers.
Trump Diesel Directive Could Ease Energy Regulations
The proposed directive could take the form of a presidential memorandum. It would reportedly direct government officials to identify ways to overcome state and local regulations that restrict energy production.
Furthermore, the administration may use the Defense Production Act (DPA) to boost domestic oil production and fuel output.
During a White House event, Trump promised significant developments regarding diesel prices. However, he did not provide specific details about the administration’s plans.
White House spokeswoman Taylor Rogers also declined to confirm the proposed directive. Instead, she suggested that further announcements were coming.
Defense Production Act Could Help Expand US Refining Capacity
The Defense Production Act gives the president special powers to support domestic production of essential materials and products.
These authorities include providing loans, offering financial guarantees, and requiring manufacturers to prioritize certain government contracts.
The White House has reportedly considered using the legislation to strengthen US refining capacity. This effort comes as the conflict involving Iran highlights vulnerabilities in American energy supplies.
However, industry executives have raised concerns about building entirely new refineries.
During discussions with administration officials last month, refining companies reportedly recommended improving existing facilities instead. They argued that upgrading equipment and expanding current operations would deliver better results.
Building a new refinery would require significantly more investment and could take several years to complete.
US Diesel Prices Surge 70% Amid Global Supply Disruptions
Diesel prices have increased approximately 70% since the US-Israeli conflict with Iran began earlier this year.
Meanwhile, the ongoing wars in Iran and Ukraine have intensified global fuel shortages, pushing energy costs sharply higher.
According to the American Automobile Association (AAA), average US diesel prices reached $6.28 per gallon on Thursday.
The administration has already introduced measures designed to improve fuel availability. These include encouraging allied countries to release emergency oil reserves and expanding access to tax-exempt, red-dyed diesel.
Normally reserved for agricultural equipment and other qualifying uses, red-dyed diesel has become part of the government’s broader effort to ease supply pressures.
Nevertheless, these measures have not prevented a substantial increase in diesel prices.
Higher diesel costs also threaten to fuel inflation. Transportation expenses affect the prices of food, manufactured goods, and other essential products.
Trump Predicts Significant Decline in Gasoline Prices
Alongside the expected diesel announcement, Trump expressed optimism about gasoline prices.
The president suggested that gasoline could eventually fall to between $1.85 and $1.95 per gallon.
That forecast is considerably below the national average of approximately $4.37 per gallon recorded on Friday, according to AAA.
However, uncertainty remains over how quickly the proposed diesel directive could deliver meaningful price reductions.
Much will depend on its final provisions, the response from energy producers, and developments in global oil markets.
With congressional elections approaching, energy affordability is likely to remain a major political and economic issue for the White House.
