States Are Acting: Several states, including California and Georgia, have announced temporary steps — suspending fuel-blend rules, waiving gas taxes and easing hauling limits — to reduce the burden of high gasoline and diesel prices. Market Pressure: AAA reports national averages of $4.48 for regular gas and $6.45 for diesel, with much higher prices in California. Federal Options: The White House is considering a temporary diesel export ban, a move experts warn could unsettle refining economics and raise long-term costs.
States Move to Ease Pain at the Pump as White House Eyes Diesel Export Ban
A driver fills up at a QT gas station on September 24 in Austin, Texas. (Photo by Brandon Bell/Getty Images)
State governments across the U.S. are rolling out short-term measures to blunt the impact of soaring gasoline and diesel prices, even as the White House considers a temporary ban on diesel exports and President Donald Trump predicted fuel costs will fall after the midterm elections.
What States Are Doing
California and Georgia led a wave of actions announced Sept. 24 to provide immediate relief to drivers, farmers and businesses. California Governor Gavin Newsom suspended the state’s seasonal summer-blend gasoline requirement for the remainder of the season, allowing lower-cost winter-blend fuel to be produced and sold right away. Newsom said the move was aimed at easing costs for families, farmers and truckers.
In Atlanta, Georgia Governor Brian Kemp declared a state of emergency and suspended the state’s motor-fuel excise tax for 30 days — cutting a 33.3-cent-per-gallon gasoline tax and a 37.3-cent-per-gallon diesel tax — and temporarily lifted some commercial vehicle weight limits to lower transportation costs.
Massachusetts Governor Maura Healey has proposed a two-month suspension of the state gas tax, pending legislative approval. Several other states have also taken steps: Texas, Alabama, Louisiana and Nebraska have temporarily relaxed rules on tax-exempt dyed diesel (typically used off-road), South Dakota eased hauling limits for farmers during harvest, and Illinois, Indiana, Kentucky and Utah have cut or frozen gas taxes in recent months.
Prices And Market Drivers
Drivers continue to feel the pain at the pump. AAA reports national averages of $4.48 per gallon for regular gasoline and $6.45 per gallon for diesel, with California averaging about $6.37 for regular and $8.40 for diesel. AAA warned September could set a new seasonal record, noting that volatility in the Strait of Hormuz and elevated crude-oil costs are keeping pump prices high.
Federal Actions Under Consideration
The administration is weighing temporary restrictions on U.S. diesel exports as a way to boost domestic supply and lower prices. The United States currently supplies roughly 20% of global diesel demand and is one of the world’s top diesel exporters. The White House said it was exploring whether a partial or full restriction would be feasible and expected a decision soon.
Expert Warning: Mark Williams, a master finance lecturer at Boston University's Questrom School of Business, told Newsweek that while a short-term export curb might lower U.S. diesel prices, it could disrupt refining economics, prompt production cutbacks and ultimately raise costs for refined products over the long term.
Political Context
President Trump reiterated a belief that fuel prices will fall after the midterm elections and suggested the end of the conflict with Iran would trigger a sharp drop in oil and gasoline prices. His comments echoed the administration’s broader focus on short-term measures to relieve consumer pain at the pump.
The picture remains fluid: state-level relief provides temporary breathing room for consumers and businesses, but analysts caution about unintended consequences if federal export restrictions are implemented. Policymakers face trade-offs between short-term relief and long-term market stability.
Help us improve.
