The President’s Diesel Two-Step: Grasping at Straws
The president, who likes to make stuff up, is now apparently worried at long last about diesel prices and has taken two rather curious steps.
First, red-dyed diesel
The first was an executive order lifting the prohibition on truckers’ use of red-dyed diesel. For readers who don’t live in farm country, red-dyed diesel is tax-exempt fuel intended for agricultural use. It is dyed red so that inspectors can test the tanks of non-farm trucks and make sure the cheaper fuel isn’t being used in commercial vehicles. The president’s hope is that long-haul drivers will save a substantial amount of money by switching to it.
There’s a catch: it is not widely available. Have you seen it at your local gas station, or at any of the truck stops along the interstate? I have only seen it at a handful of local stations in rural Georgia. Patrick De Haan, head of petroleum analysis at GasBuddy, estimates that perhaps one truck in 100 would actually be able to get the tax-exempt diesel.
And what about the farmers? Wouldn’t more competition for red-dyed diesel drive up its price? Not according to our president, who told a rally that the average trucker “will save over $100 every time they fill up” and that farmers “will also save millions and millions of dollars.” He went on to claim that the tax waiver “will also drive down the cost of all goods, including grocery prices, very substantially.” Sorry, but only the most devoted MAGA fan could believe this, and it shows once again the president’s lack of economic knowledge – despite his degree. The problem is supply and the order does nothing to increase supply. If anything, it raises demand for tax-exempt diesel and may well push its price up.
Also, contrary to the president’s wishes, his executive order does not “trump” state law. Georgia’s Governor Brian Kemp has already waived the state tax on diesel, but as of this writing he has taken no action on red-dyed diesel. Bottom line: it’s up to the states, not the president.
And by the way, what does Robert F. Kennedy Jr. have to say about all this red dye?
Second, lifting Russian sanctions and Trump’s mysterious “ceasefire”
The president’s second move was to lift sanctions on Russian diesel and amounted to stabbing Volodymyr Zelenskyy in the back. That isn’t just my characterization, it is the headline in the Kyiv Post (https://www.kyivpost.com/post/86677): “Trump’s deal with Putin stabs Ukraine in the Back.” The paper called it “A staggering sell-out of Ukraine by President Donald Trump, with the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announcing a license to allow Russia to sell diesel to the US and on global markets.” That is an understatement.
Under the announcement, sanctions on Russian diesel exports are lifted for six months. As the Wall Street Journal reported: “In a post on Truth Social, Trump said Russian President Vladimir Putin agreed that his country would supply over 300,000 tons of diesel fuel into the U.S. and global markets, another 500,000 tons in November, and 1 million ‘immediately thereafter.’ He added that Russia would also later deliver an additional 3 million tons of diesel ‘within a short period of time,’ based on the condition of its refineries.” Trump also declared “Lower prices for Americans, especially our Great Farmers, Ranchers, and Truckers, is my Greatest Priority.” Again, no lower prices will be evident from this action.
Some perspective: the Russians measure diesel in tons rather than barrels. The world is currently short about 1.6 million barrels of diesel a day. Even if every ton Russia promised arrived at once, it would plug that gap for only about three weeks.
Zelenskyy was understandably upset and warned that any easing of sanctions plays into Putin’s hands: “Russia will ‘repay’ the diesel with further terror and perfidy. Allowing Russia to sell petroleum products is an investment in a war that must be ended, not prolonged. What is needed is real de-escalation with Russia on a reciprocal basis.” Of course he is right.
The president then went further, essentially ordering Ukraine to stop targeting Russia’s refineries. Those strikes have been effective. Before Ukraine’s campaign began, Russia produced between 85 and 90 million tons of diesel a year, with domestic consumption just under two-thirds of that. Since then, Ukrainian strikes have hit six refineries representing about half of Russia’s diesel capacity. Some analysts doubt that Russia can export anywhere near the amounts Trump promised, given the poor state of its refineries and its own export restrictions.
Zelenskyy rejected Trump’s demand, saying Russia must also agree to stop attacking Ukraine’s energy infrastructure.
Then in a truly bizarre move, Trump announced a partial ceasefire that neither side seemed to know about. “Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!” he posted on social media. Zelenskyy’s response: “That’s news to me.”
So Ukraine didn’t know about the ceasefire. What about the Russians? Apparently, they didn’t know about it either. The Kremlin prompted rejected the idea of a temporary ceasefire outright, with a spokesman telling reporters that Moscow wants a long-term peace deal instead. As for Trump’s self-declared “energy ceasefire,” the spokesman said only: Contacts continue. As soon as we have something to say on the matter, we will inform you. Translation to Trump: Go pound sand. Still, Zelenskyy said he would accept it if Putin did the same: “If President Trump negotiated it with Putin – please tell us when the ceasefire begins. We are ready and we will accept it.”
Meanwhile, The Guardian, citing the New York Times, reported that U.S. officials had offered the Kremlin lucrative economic incentives in exchange for a ceasefire, reportedly including the release of billions of dollars in frozen Russian sovereign assets. The administration has also revived a plan to sell off parts of the Russian energy company Lukoil, a multibillion-dollar deal that would benefit Middle Eastern investors with “business ties” to U.S. negotiators. That should surprise no one, given reports that negotiators Jared Kushner and Steve Witkoff have been looking to profit from the talks.
Zelenskyy was understandably furious, and an equally irate Trump said Zelenskyy should “damn well stop” hitting Russian refineries, adding, “I think it’s time for Ukraine to get a new president.”
Just hours after Trump’s announcement, Russian strikes hit energy infrastructure across Ukraine, ignoring his unilateral energy ceasefire. All of this is embarrassing, though apparently not to our president.
Not surprisingly, democrats (and a few republicans) criticized the president’s actions. A bipartisan group of senators called on Trump to “immediately reverse course” on allowing Russian diesel imports, accusing the administration of violating federal law and throwing Moscow a financial lifeline as it wages war on Ukraine. Citing Congress’s 2022 ban on Russian energy imports, the senators wrote that “President Trump’s decision to allow Russian diesel imports to the U.S. runs directly counter to that law” and that “The Administration has also failed to consult with Congress or submit any explanation to justify its decision as required by statute.”
Excuse me, but when has this president ever consulted Congress or justified any of his actions? Notably, the republicans in the group are the usual suspects: Susan Collins of Maine, Lisa Murkowski of Alaska, Thom Tillis of North Carolina and John Curtis of Utah. None of them is a supporter of the president, and all of them are routinely ignored by him. They know the letter will have absolutely no effect, but it makes for good theater, especially for Collins, who is in a tough fight for reelection. But where is the republican leadership? The silence is deafening.
Now with apologies to the O’Jays whose lead singer Eddie Levert is a cousin of mine:
Backstabbers (lyrics)
(What they do?)
(They smilin’ in your face)
All the time, they want to take your place
The back stabbers (Back stabbers)
(They smilin’ in your face)
All the time, they want to take your place
The back stabbers (Back stabbers)
I wish they’d take some of these knives out my back
