North Carolina looks to suspend fuel tax, President Trump to import Russian diesel
The North Carolina General Assembly passed legislation Oct. 7, to temporarily suspend the state’s 41-cent-per-gallon motor fuel tax through Nov. 30.
The measure now heads to the Governor, who has 10 days to sign or veto the bill. If no action is taken, the legislation will automatically become law.
The move comes amid diesel/distillate inventories tracking lower than usual moving into the winter season, with higher demand coming for distillates, and the Trump administration’s moves to bring down pressure on very-high diesel pump prices with exploration of the deferment of federal tax on the on-highway use of off-road dyed fuel.
The International Fuel Tax Association (IFTA) warned late last week that the dyed-diesel executive order’s ultimate impact remains unclear.
“Even if the Secretary of the Treasury determines that relief is authorized” for dyed-diesel users, it wouldn’t “override state laws prohibiting dyed diesel on public highways. Each state must issue its own Executive Order to permit such use. Without a state-specific order, a carrier may still face fines and other penalties for using dyed diesel in that state.”
As of Thursday last week, 11 states had issued their own orders, IFTA said in this notice, encouraging carriers to monitor their own state for potential future notices at this page.
[Related: Could dyed diesel damage your engine or void your warranty?]
The President Friday annouced a deal with Russia to bring diesel into U.S and global fuel markets. Lawmakers voiced opposition to such an effort over the weekend, six Senators calling it unlawful given an explicit 2022 ban of imports of Russian oil to the U.S. following the start of the nation’s war in Ukraine.
No resolution to the U.S.-Iran conflict that started the run-up in diesel prices early this year appears close.
States like North Carolina join Georgia in suspending state fuel taxes for pricing relief. In North Carolina, the approved legislation mandates that the state replace an estimated $362.3 million in lost motor fuel tax revenue using funds from the state’s Inflation Reserve.
Other key provisions:
- Temporary suspension: Halts the motor fuel tax on gasoline, diesel, and alternative fuels starting the day after the bill becomes law and running through Nov. 30.
- Consumer savings: Mandates that the tax savings be passed down to consumers, excluding fuel purchased by retailers prior to the suspension taking effect.
- Agricultural and commercial exemptions: Grants temporary tax exemptions and penalty relief for specific uses of dyed diesel fuel by qualifying farmers, commercial loggers, commercial fishermen, and wildlife managers through Dec. 31, 2026.
- 2027 rate protection: Ensures the temporary suspension will not interfere with the calculations used to set the motor fuel tax rate for 2027.
[Related: Trump orders relief for on-highway red-dyed diesel use]
Virginia receiving grants to improve I-81 congestion
Two grants from the U.S. Department of Transportation totaling nearly $90 million will fund capacity and safety upgrades along 325 rural miles of I-81 in Virginia.
Transportation Secretary Sean Duffy announced last week that Virginia’s Commonwealth Transportation Board (CTB) will receive two Transportation Infrastructure Finance and Innovation Act (TIFIA) loans totaling up to $89.7 million from the Build America Bureau.
The projects will:
- Add dedicated truck climbing lanes in Washington County and Augusta County, allowing slower-moving heavy trucks to climb steep hills without blocking passenger cars
- Fix dangerous merging bottlenecks by extending exit ramps in Wythe County and adding merge lanes around Wytheville to give drivers more room to speed up or slow down safely
- Replace aging bridges over Peppers Ferry Road and the I-81 northbound bridge over I-77 to guarantee long-term corridor reliability
“President Trump understands strong roads mean strong supply chains — that’s why he is investing in big, beautiful upgrades along the I-81 corridor in Virginia,” Duffy said. “By upgrading the commonwealth’s transportation infrastructure, reducing dangerous bottlenecks, and separating freight and passenger traffic, Virginia families and freight will move more safely and efficiently across the entire Mid-Atlantic region.”
The package supports Virginia’s $4 billion I-81 Corridor Improvement Program, which is projected to generate $5.2 billion in economic activity, supporting regional growth and job creation. Construction on many projects is already underway, with completion slated for late 2035.
“As a vital commercial corridor not only for Virginia but the entire East Coast, additional travel lanes, new bridges and interchange improvements are enhancing safety and reducing congestion on I-81,” said Virginia Transportation Secretary Nick Donohue. “The TIFIA loans will help Virginia stretch its transportation dollars and continue building the interstate corridor all travelers deserve.”
[Related: Truckers’ 2025 Highway Report Card: Worst states, routes, parking]
California Peterbilt dealer network expanding
Coast Counties Truck & Equipment Company, doing business as Coast Counties Peterbilt, is moving into northern Nevada with its acquisition of Peterbilt Truck Parts & Equipment.
“John Phillips and his team have built a tremendous business in northern Nevada, and we have a great deal of respect for what they have accomplished,” said Mike Sorensen, president of Coast Counties Peterbilt. “We’re excited to bring our organizations together, support the great team already in place and build on the strong foundation they have created.”
Peterbilt Truck Parts & Equipment’s Reno location will continue serving customers through truck sales, parts, service and PacLease.
Coast Counties Peterbilt operated nine dealerships, three TRP parts locations and Kroeger Equipment & Supply, all in California, before adding the Nevada location.
Highway Angel recognized for post-crash assistance
The Truckload Carriers Association (TCA) has named Sammie Phillips, a truck driver for Melton Truck Lines, a Highway Angel for his response after witnessing a serious rollover crash in Kentucky.
At approximately 8:10 a.m. on Friday, Aug. 14, Phillips was traveling near Lexington, Kentucky, when he saw an SUV carrying four young adults lose control and roll multiple times.
Phillips immediately activated his emergency lights, pulled his truck over and ran toward the wreck.
The SUV had rolled three or four times and came to rest on its passenger side. Phillips climbed onto the vehicle and tried to find a way to reach the occupants.
“By the grace of God, I climbed on top,” he said. “I was like, ‘I ain’t gonna be out here opening the back latch, so let me climb on top and open one of the doors.’”
Two of the four occupants told Phillips they were injured, while the other two had scrapes and bruises. Phillips said he did not hesitate to help.
“I just thought I was Superman,” he said. “Superhero, and you couldn’t tell me I wasn’t in that moment.”
Law enforcement arrived shortly afterward and assisted with getting the occupants out of the vehicle. Phillips remained at the scene to help and provide information to responding officers.
Asked why he stopped rather than simply calling 911 and continuing on his route, Phillips said he thought about his own family.
“What if that was one of my family members?” he said. “I’d want somebody to stop.”
