By Henry Ashcroft
WASHINGTON — The White House says relief at the pump is coming, and it is pointing at New York as a state that has not followed its lead.
In a release issued Sunday, the administration listed the steps President Donald J. Trump has taken to lower fuel costs. They include Defense Production Act money for refineries, an executive order on diesel taxes, expanded Venezuelan oil imports, and deals with other countries to release diesel from their stockpiles.
“Gas and diesel prices will soon drop rapidly thanks to President Donald J. Trump’s bold actions to unleash American Energy,” the release said.
It also said the Environmental Protection Agency issued fuel waivers that increased domestic gasoline supply, and that prices fell in states that waived their own requirements. “In stark contrast, blue state politicians in New York and California have not adopted these standards, driving up fuel prices for their own residents,” the White House said.
What Washington has done
The largest new item is refinery capacity. The Department of Energy announced plans to provide up to $150 million in Defense Production Act Title III funding to expand petroleum production, storage and logistics at U.S. refineries. The department said the money is expected to increase U.S. refining output “by millions of gallons per day.” It said the selection process is ongoing and recipients will be announced soon.
“After 17 years of Democrat leaders enacting energy subtraction policies that led to the closure of refineries and more expensive refined oil products, the Trump Administration is taking action to expand our nation’s refining capacity and strengthen our energy security,” Energy Secretary Chris Wright said. “These Defense Production Act funds will be used strategically and in partnership with private industry to rapidly bolster America’s existing energy infrastructure.”
Earlier this month, Mr. Trump signed an executive order directing the Treasury secretary to defer certain federal diesel excise tax payments incurred from Oct. 5 through Dec. 31, without penalties or interest where the law allows. The order also asks Treasury to explore ways, including legislation, to forgive the deferred amounts.
“Farmers and truckers are essential to the American way of life,” the order states. “Restricted global diesel supply has led to rising prices, and these key industries have been particularly hard hit.”
The release also says the administration has granted a record number of small refinery exemptions. It says Venezuelan oil imports have risen more than 400% and that over 130 million barrels of diesel are being released from other countries’ stockpiles.
What Buffalo drivers are paying
Prices in Western New York remain well above last year’s. In its Oct. 19 report, AAA Western and Central New York put the average for regular gasoline at $4.37 a gallon in Buffalo and Batavia. The New York State average was $4.42 and the national average was $4.29. A year earlier, the state average was $3.13.
Diesel is higher still. AAA put New York’s average at $6.50 a gallon, compared with $3.87 a year earlier. The national diesel average was $6.31.
AAA said crude oil was trading between $99 and $107 a barrel and that “volatility in the oil market has led to seasonal record highs this year.” Prices have climbed since the U.S. and Israel began military operations against Iran in February.
Albany’s view
Gov. Kathy Hochul has argued that Washington should provide the relief. In March, she told a Politico forum, as reported by amNewYork, that she did not rule out another state gas tax holiday. But she said the 2022 suspension did not work as intended.
“You know what happened when we did it last time? The prices went even higher,” Ms. Hochul said. “So how about suspending the federal gasoline taxes?”
New York charges 24.8 cents a gallon in state gas tax, according to amNewYork. The federal tax is 18.4 cents a gallon for gasoline and 24.4 cents for diesel. The White House diesel order defers payments rather than suspending the tax, and does not apply to gasoline.
The release does not say which EPA waiver standards New York has declined to adopt. The Buffalo Chronicle has asked the White House, the EPA and the governor’s office to clarify which requirements are at issue and what difference they would make at the pump in Western New York.
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