Trump Shields Big Oil with Tax Gimmicks as Working Families Struggle with Soaring Fuel Prices Ahead of Midterms
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President Donald Trump has announced temporary tax relief for dyed diesel and is pressuring states to cut taxes, while the G7 releases oil stockpiles—all moves that critics say primarily benefit fossil fuel corporations and fail to address the root causes of high gasoline and diesel costs as elections approach.
Fuel prices in the United States have more than doubled since the conflict in the Middle East began in February, putting immense strain on transport workers, farmers, and everyday drivers. As the midterm elections approach, President Donald Trump has chosen to highlight gasoline and diesel costs, but his solutions appear to favor corporate interests over the needs of ordinary Americans.
At a campaign stop, Trump announced a waiver allowing red-dye diesel—normally taxed for off-road use—to be sold for highway use without federal levies. This move, explained by pricing manager David Ruisard, does little more than shift tax burdens while maintaining the status quo for oil companies. The only difference between the taxed and dyed fuel is the dye, which is difficult to remove and can lead to fines for tax evasion, a system that ultimately protects government revenue rather than consumers.
Instead of pushing for meaningful reforms or investments in renewable energy, the administration is urging states to lower gasoline taxes. Ohio and Georgia have already reduced their rates, but analysts note these cuts only modestly lower pump prices and do little to address the profiteering of oil giants. Trump has floated suspending the federal gasoline tax, a move requiring congressional approval that would further deprive public services of much-needed funds.
Internationally, the G7—under pressure from the White House—agreed to release 100 million barrels of oil and diesel from strategic reserves. While GasBuddy analyst Patrick De Haan said the announcement helped push prices down, economists warn that this relief is likely temporary and does nothing to break the fossil fuel industry's grip on global markets.
"The combined impact of higher rates and higher energy prices is squeezing household budgets and adding to firms' costs," said Michael Pearce, chief U.S. economist at Oxford Economics, highlighting the burden on working families.
Analysts point out that while crude oil flow is nearly back to pre-conflict levels, prices remain above $100 a barrel, and the ongoing Russia-Ukraine war continues to disrupt supply. Ruisard estimated that about 60% of the recent diesel price increase is linked to the Strait of Hormuz disruption, with the remaining 40% tied to the Ukraine conflict.
Experts caution that even if geopolitical tensions ease, damaged facilities in the region could keep production below normal for months, meaning working people will continue to bear the brunt of high fuel prices while the fossil fuel industry and its political allies avoid real accountability.