Executive Order on Dyed Diesel Tax: What You Need to Know

 Reading an Executive order is very much like watching MobLand, I only understand every other word but I can’t stop watching. The Executive order, was directed to the Treasury and IRS , giving them five days, to see if they can legally defer the FED excise tax of $.243 on dyed diesel that may be used for on road use and waive any penalties. Defer… means you will get the opportunity to pay later, not waiving or eliminating. Nothing has changed, Congressional approval is needed to remove the excise tax on clear diesel, that already failed several months ago. We all know the dye that paints the diesel is injected at the terminal level, unfortunately its Politicking at its finest. Most agree that the only resolution is for a peace deal, for shipping to return to “normal”. No Strategic reserve release, export ban, or tax holiday will solve this global infrastructure problem. Mother Nature wants her two cents at just the right time with hurricane Isaias churning in the Gulf, shutting in about 30% of the regions output. The last three sessions took back much of the previous week’s losses, with daily spreads from low to high over $.20. As we mentioned several times before, market conditions are preventing many from carrying any excess inventory, being aligned with a supplier that has your needs covered will be paramount.