US States and G7 Act to Combat Soaring Diesel Prices
Governors in Illinois and California and the G7 are implementing emergency fuel measures as diesel prices surge amid conflict with Iran and driver shortages.
Diesel prices have surged across the United States, driven by conflict with Iran and resulting in severe financial distress for the trucking and agricultural sectors. In California, prices reached $8.35 per gallon, while the national average climbed to $6.32. To mitigate the crisis, the Group of Seven agreed on October 2 to release 100 million barrels of emergency oil reserves.
JB Pritzker, Governor of Illinois, issued an executive order allowing farmers to use tax-exempt dyed diesel on state roads and highways through the end of the year. Pritzker declared all 102 Illinois counties as disaster areas for 30 days to mobilize resources, attributing the price hikes to the tariffs and foreign policy of the Trump administration. State Representative Sharon Chung described the move as a short-term solution to a federal fuel price hike.
In California, Governor Gavin Newsom authorized the early sale of cheaper winter-blend gasoline to ease pressure on operators. Simultaneously, the administration of Donald Trump expanded the use of tax-exempt red dye diesel for on-road trucks. The crisis is compounded by a driver shortage following a Department of Transportation crackdown on immigrant drivers, which resulted in the cancellation of over 30,000 licenses. Industry leaders warn that these rising hauling costs will likely increase consumer prices for groceries and other essential goods.
