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Fri, 09 Oct 2026

Fri, 09 Oct 2026 Trump wants to reduce the cost of fuel as the midterms loom - will it work?

The price of fuel has soared as the cost of living emerges as a key issue for millions of Americans.

* Gasoline and diesel prices have more than doubled since the US-Israel conflict with Iran began in February, affecting transport businesses, farmers, and anyone who drives a vehicle in America.
* Ahead of the critical midterm elections, there are growing calls for more to be done to reduce fuel prices, with US President Donald Trump making several comments and announcements aimed at getting costs down.
* Trump's announcement of a waiver on the use of red dye diesel has been seen as an attempt to address the issue, but analysts say it may not have a significant impact in the long term.
* Global oil supplies have been restricted since the conflict in the Middle East effectively halted the usual flow of oil and refined products through the Strait of Hormuz for months.
* The ongoing Russian war with Ukraine has also impacted oil supplies, contributing to higher fuel prices.
* US economists estimate that 60% of the price increase is connected to the Strait of Hormuz and 40% to the Russia-Ukraine conflict.
* Higher energy prices are responsible for most of the uptick in inflation this year, which is pushing up interest rates.
* The release of 100 million barrels of oil and diesel from stockpiles by G7 countries has helped push prices down slightly, but analysts say it's only a temporary solution.
* Trump's suggestions to suspend federal tax on gasoline or ban diesel exports from the US may not be effective in reducing prices, as they would require Congressional cooperation and could have unintended consequences.
* Analysts believe that solving one or both of the geopolitical tensions causing high prices is the only way to reduce gas prices meaningfully.