On Oct. 21, AAA put the national diesel average at $6.32 a gallon, up from $3.62 a year earlier. It hit a record $6.53 on Sept. 22, CBS News reported, citing AAA. Prices rose after the U.S. and Israel attacked Iran in February, which blocked the Strait of Hormuz, Harvest Public Media reports.
What the White House did
On Oct. 5, Trump signed an order temporarily allowing tax-free dyed diesel, normally for off-road use, on highways and deferring the 24.4-cent federal tax through year end. The White House estimates that saves about $60 on a 250-gallon fill. Trump said the typical trucker "will save more than $100 every time they fill up," AP reported. South Dakota Farm Bureau president Scott VanderWal said "every little bit helps" but called it "a little bit of a Band-Aid," NPR reported.
On Oct. 9, Trump posted that Russia would "immediately supply" more than 300,000 tons of diesel, CBS reported. A White House official told CBS the plan will lower costs for farmers and truckers. Analyst Daniel Sternoff told CBS it "might take the edge off of prices, but it will not substantially lower them." The same day, Treasury issued General License 135, allowing the sale, delivery and import of Russian-origin diesel until April 7, 2027.
On Oct. 16, Trump signed an order waiving most Russia-related parts of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 two days before they were to start, KATV reported. The Senate passed the law 86-11. The waiver covers tariffs on Russian goods and on major buyers of Russian oil and gas, plus sanctions on foreign banks. The White House said enforcing the law could hinder Russia-Ukraine peace efforts.
Reactions
Sen. Thom Tillis (R-N.C.) called the waiver "beyond irresponsible," AP reported. Sen. John Cornyn (R-Texas) said the late Sen. Lindsey Graham, the law's namesake, "would be appalled." Senate Democratic leader Chuck Schumer said the deal gives the Russian economy life support. Rep. Gregory Meeks (D-N.Y.) introduced a bill to block the diesel deal. Congress is in recess until after Election Day.
Trump said "it's a very good decision" that is "good for the country." Secretary of State Marco Rubio said Trump would take 60 days to review the economic effects, AP reported. Rep. Thomas Massie (R-Ky.) backed the waiver as within powers Congress gave Trump, and Ukrainian President Volodymyr Zelenskyy said it reduces pressure on Russia, KATV reported.
The Iowa angle
An analysis by Democratic staff of Congress's Joint Economic Committee ranked Iowa second, behind Illinois, with about $151 million more in 2026 diesel costs to plant five major crops than in 2025, Investigate Midwest and KTTC reported.
Higher crop prices "would have gotten us into a point where we could have been decently making a few bucks," Iowa Corn Growers Association president Steve Kuiper told Harvest Public Media. Diesel, he said, is "hurting that aspect of it right now."
In the Iowa agriculture secretary race, Republican incumbent Mike Naig wants a temporary pause in state fuel taxes. Democrat Chris Jones called for being "less dependent on fossil fuels in the first place," WOWT reported.
Half of registered voters in a Reuters/Ipsos poll cited the cost of living as the most important factor in how they will vote, Reuters reported.