White House weighs red-dyed diesel tax relief as fuel prices exceed $6 per gallon

The White House is weighing regulatory relief to expand the sale of tax-exempt red-dyed diesel to curb surging domestic fuel costs. The measure is being considered as an alternative to a contentious diesel export ban, which critics warn could curb U.S. refinery throughput by about 750,000 barrels per day. The proposal follows a steep rise in retail diesel prices, which exceeded $6.00 per gallon nationally and hit a record average of $6.529 per gallon. Red-dyed diesel is exempt from the 24.4-cent-per-gallon federal highway tax, though analysts caution tax relief will not resolve underlying supply constraints.