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The Economic Times
The Economic Times
Debjit Sinha

Diesel price hits record highs ahead of U.S. midterm elections 2026: Texas, California, other key political states are taking measures to offer relief for Americans. Details here

U.S. midterm elections 2026 are set take place in November and rising diesel prices across the states have become a key burning issue for Americans. Diesel hit a record of $6.53 a gallon a week ago, according to AAA data. Now states are gradually taking steps to check the price. Several states have waived gasoline taxes and other measures include allowing different fuel blends, easing vehicle weight restrictions.

With elections around the both ruling Republicans and the Donald Trump administration are steps to curb diesel prices keeping in mind the upcoming polls.

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Diesel Price Checking Measures by Republicans, Trump Administration

The White House is considering regulatory relief that would allow broader sales of red-dyed diesel, a move that could allow some buyers to avoid the federal fuel tax, while Trump said last week that he backed a ban on diesel exports. Red-dyed diesel is generally reserved for off-road uses such as farming and is exempt from most federal fuel taxes, as per a report on Reuters.

The Trump administration and Republican candidates in some of the tightest election races are looking for ways to bring down diesel prices without disrupting fuel supplies or creating ​additional costs elsewhere in the economy, as November's midterm elections approach and President Donald Trump's economic approval ratings remain under strain.

Here are steps taken by key states ahead of U.S. Midterm elections 2026.

Texas

Texas governor said he would expand the use of dyed diesel on Texas roads, raised the allowable weight for fuel, agricultural and timber, and suspended the state's low-emission diesel fuel regulations to reduce emissions of nitrogen oxides from diesel-powered motor vehicles and non-road equipment.

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California

California on Monday suspended California’s seasonal summer-blend gasoline requirement for the remainder of the season and directed state agencies to allow winter-blend gasoline to be manufactured, imported, distributed, and sold in the state immediately.

Michigan

Michigan governor temporarily waived an environmental rule, allowing regional gasoline stations to sell cheaper, higher-vapor winter blends and E15 through the summer.

Massachusetts

Massachusetts governor plans to file legislation to temporarily suspend its 24-cent-per-gallon tax on gasoline and diesel for two months beginning seven days after passage. Retailers would be required to reflect the temporary suspension in prices at the pump, and gasoline station owners would be protected from losing money on fuel sold at the reduced price.

Illinois

Illinois governor paused a 1.3-cent increase in the gasoline tax for six months this summer.

Georgia

Georgia on Monday suspended the state gasoline and diesel tax for 30 days and suspended weight restrictions on commercial vehicles to reduce the cost of transporting goods.

Alabama

Alabama last week said it would halt the enforcement of restrictions on use of red-dyed diesel for 120 days.

Indiana

The state suspended its sales tax on gasoline.

Kentucky

In May, Kentucky governor signed an executive order reducing the gasoline tax by 10 cents, freezing any increases in gasoline taxes and any increases in motor vehicle property tax in 2027.

Louisiana

Louisiana last week said it would allow farmers and timber harvesters to use the dyed diesel fuel in highway vehicles.

Montana

Montana waived certain hours-of-service rules for intrastate gasoline and diesel haulers.

Nebraska

Nebraska allowed highway-registered vehicles to use untaxed dyed diesel fuel without facing state fines or penalties. The governor also said that diesel taxes paid while transporting Nebraska's seasonally produced products and livestock on state roads are eligible for a refund and eased weight limits for seasonal crop transport.

Oklahoma

Oklahoma governor paused enforcement of all taxes, regulations, and fines levied on the use of red-dyed diesel in farm vehicles and in highway vehicles for 120 days.

South Dakota

South Dakota state permitted farmers and haulers transporting crop, livestock, and other agricultural commodities to do so at up to 10 per cent above standard highway weight limits and temporarily waived the $25 overweight trip permit fee. It also directed the department of revenue to monitor fuel supplies and determine if a tax refund to suppliers is warranted if regular diesel needs to be used in farm machinery because of potential shortages of dyed diesel.

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