Every fuel stop hurts right now.
Diesel is averaging more than $6.50 a gallon, almost $3 more than a year ago. For small fleets and owner-operators, that can mean the difference between making payroll and parking trucks. The Missouri Trucking Association says it’s already getting closure notices.
Some States are reaching for the fastest lever they have: the fuel tax. Land Line Media reports that Massachusetts, Ohio, Pennsylvania, New York and others are weighing holidays.
The intent is good. The results look better on paper than at the pump.
The Selling Points, and the Catch
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“It’s fast.” True. But fast relief is also temporary relief, and diesel prices may not cooperate with the calendar.
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“Every dollar counts.” True, so check the math. Massachusetts diesel averages $6.39, and its 24-cent tax is under 4% of that. A truck running 100,000 miles a year at 6 miles per gallon burns roughly $17,750 in diesel over two months. The holiday saves about $670.
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“It shows leaders are listening.” Maybe. But fuel taxes pay for the roads and bridges trucks use more than almost anyone, which is why Ohio Gov. Mike DeWine turned down a holiday earlier this year. Skip maintenance today and carriers pay later in rough pavement and weak bridges.
Longer-Term Fixes for Operating Costs
Fuel prices come from global supply disruptions, not a state tax, and fuel is only one cost squeezing carriers.
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Domestic energy production. Encouraging more U.S. energy production and refining capacity makes carriers less exposed to the next overseas crisis.
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Repealing the federal excise tax. The 12% federal excise tax on new trucks and trailers dates to 1917, when it helped pay for World War I. It adds tens of thousands of dollars to every new heavy-duty truck, about $6 billion a year industrywide. Bipartisan bills would repeal it, helping carriers swap older equipment for safer, more efficient trucks. Learn more about the FET repeal effort.
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Lawsuit reform. Nuclear verdicts, jury awards of $10 million or more, against the trucking and automotive industries nearly tripled to $3.4 billion in 2025, according to Marathon Strategies research reported by Transport Topics. Carriers say awards like those drive up insurance premiums. Reining in runaway verdicts could lower rates without weakening a single safety rule. Alabama safety leaders took up the issue at this year’s legal summit.
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Fixing bottlenecks. A truck stuck in traffic burns diesel going nowhere. The U.S. DOT plans a loan of up to $2.52 billion for the I-10 Mobile River Bridge and Bayway project, which targets the state’s worst truck bottleneck.
What It Means for Alabama
Alabama hasn’t proposed a fuel tax holiday, but with Georgia and Tennessee in the conversation, the debate is getting closer.
Alabama has recently taken a more targeted approach to address specific seasonal industry concerns. On Thursday, Gov. Kay Ivey directed the Alabama Law Enforcement Agency to pause enforcement on dyed diesel for 120 days. Dyed diesel is tax-exempt fuel normally reserved for off-road equipment. The move is aimed at farmers and timber operators in the middle of harvest season, which runs through Nov. 15.
ALEA says it will keep its focus on public safety while the pause is in effect. Ivey also asked Revenue Commissioner Mary Martin Mitchell to request dyed diesel penalty relief from the IRS, since federal rules still apply.
